Community ecommerce startup CityMall raises $47 million from Accel

Community ecommerce startup CityMall, which caters to non-metro consumers, has raised $47 million in its Series D funding round led by Accel.

The round, a mix of equity and debt, also included participation from existing investors like Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.

Cofounder and CEO Angad Kikla said $41 million was raised in equity, with the rest as debt. The company is now valued at $320 million, down from $350 million in 2022 when it raised $75 million from Norwest Venture Partners.

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The new funds will be used to strengthen existing markets, enter new regions, expand private labels and brand partnerships, and hire more talent.

“A lot of people are coming into ecommerce, but interestingly, the penetration of the grocery category remains extremely low, at less than 2%. Currently, the only people buying groceries online are affluent consumers in metro cities through quick commerce platforms. However, the larger mass of India is still untouched when it comes to purchasing groceries online,” said, Cofounder and chief executive Angad Kikla.

Rachit Parekh and Pratik Agarwal, partners at Accel, said, “CityMall has built a low-cost supply chain model that makes ecommerce economically viable for India's underserved communities and delivers true value to the mass market consumers.”

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About CityMall 

Founded in 2019 by Angad Kikla, Naisheel Verdhan, and Rahul Gill, CityMall sells groceries, FMCG products, white goods, electronics, and fashion in Tier III and IV towns.

It works as a marketplace where community leaders (resellers) connect with local buyers. Leaders get bulk orders from CityMall and deliver them to customers. The app is available on google Play and the App Store.

CityMall is active in 60+ cities across Delhi NCR, Uttar Pradesh, Haryana, Uttarakhand, and Bihar, and has doubled growth year-on-year in recent years.

In FY24, operating revenue grew 21.3% to ₹427 Cr from ₹352 Cr in FY23, with product sales making up 91.7% (₹391.57 Cr). However, net loss rose 9.6% to ₹159 Cr from ₹145 Cr last year.

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