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Introduction: A New Wave in E-Commerce
Giants like Amazon and flipkart have long dominated India's e-commerce industry. But the next wave of growth is not from its metros — instead, from smaller towns and cities. A place changing the rules in the city economy is CityMall, a Gurugram-based startup founded by Angad Kikla, Naisheel Verdhan and Rahul Gill with a distinct model of community commerce with a local touch. The startup recently closed its Series D funding round, adding $47 million led by Accel; an indication that investors believe in its mission to democratise online shopping for Bharat.
The Spark: Identifying a Gap in Bharat’s Market
Despite the rapid rise of e-commerce in India, Tier-2 and Tier-3 cities were underrepresented. Expensive delivery charges, a lack of confidence in online payments and limited exposure to digital shopping acted as obstacles. The CityMall founders saw the opportunity to fill this void - millions of aspiring consumers whose purchasing power was rising but who lacked convenient access and trust to affordable online destinations. Their answer was to develop a model of social commerce that was based on trust, relationships and access. Rather than trying to take on the big guys in the metros, they looked to address the significant unmet demand in small towns.
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The Founders: A Trio with a Shared Vision
CityMall is the brainchild of three ambitious entrepreneurs who shared a vision of disrupting online retail in India. Angad Kikla, a finance guy who had also worked in strategy, envisioned building a scalable business as opposed to a mom-and-pop, unorganised store and thus CityMall. Product backbone designed by a technologist at heart, Naisheel Verdhan crafted the product backbone to scale the CityMall platform to millions while not forgetting to keep it simple for small-town customers. Rahul Gill, on the other hand, focused on operations and execution, trying to simplify the supply chain, managing vendor tie-ups and making sure that the value was delivered at each stage to the customer. Their mutual experiences were the perfect blend of vision, crypto tech and execution.
The Breakthrough: Social Commerce at Scale
CityMall's breakthrough was that it empowered local community leaders. These leaders who ran WhatsApp-based online stores were often homemakers, students and small business owners. They selected products, placed large orders and delivered goods to their networks, earning commissions in the process. By earning the trust of customers, the model not only lowered the cost of delivery but also created employment. What set CityMall apart was its power to do both commerce and empowerment together; transforming online shopping from a purely transactional act into a conscious social effort based on trust from within a community.
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The Big Funding Boost: $47 Million from Accel
In August 2025, CityMall raised $47 million in its Series D funding round led by Accel, along with Elevation Capital, WaterBridge Ventures and Jungle Ventures. This new round of funding came at a moment when a lot of e-commerce companies were wrestling with how to add both growth and profit. On the other hand, CityMall has demonstrated promising performance in terms of feasibility with its operational profitability across multiple cities. The money will be used to help the startup expand to new Tier-2 and Tier-3 markets, as well as to develop its private label proposition and add next-generation tech like artificial intelligence to increase personalisation and efficiency. For investors, this was a bet, not just on e-commerce but a bet on the future of Bharat's digital economy.
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The Challenges Brewing Beneath the Surface
The road is not without bumps. As CityMall grows, however, holding on to the trust that community leaders have in the model would get harder. The competition is also heating up as the likes of meesho and DealShare are also eyeing the same customers. Moving to smaller towns also comes with logistical challenges, as last-mile delivery cost escalates outside metros. Another challenge is enticing and keeping the best talent; especially outside the cities. Yet despite those stumbling blocks, with a focus on sustainable unit economics and deep insight into local markets, CityMall maintains an edge against many of its rivals.
Impact and Why CityMall Matters
CityMall is not just another e-commerce startup. It's a start toward selling as opposed to social empowerment. Over WhatsApp, it has brought financial empowerment to thousands of micro-entrepreneurs, primarily women. For consumers, it presents a cheap way to order groceries and staples that feels safe, with a trusted middleman to allay fears.
At a higher level, CityMall is proving that the future of e-commerce in India will not be dictated purely by technology, but by trust, relationships, and inclusiveness. It is proof that the next wave of unicorns will not come from India's cities, but from Bharat.
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Lessons for Startups from CityMall
The story of CityMall provides lessons for other startups. It is an excellent example of why identifying true market gaps rather than riding the latest wave is critical. It is evidence that community-driven growth can be more sustainable than aggressive marketing spends. It stresses the criticality of maintaining a local-centred approach to scaling solutions. More importantly, it's a reminder that sustainable growth and strong unit economics will continue to inspire investor confidence even in challenging funding environments.
Conclusion: A Startup Brewing Trust, One Community at a Time
CityMall's ascent mirrors a broader change in India's e-commerce tale. With a mission focused team, strong investor backing, innovative leadership and a community first approach, it is all set to change the way Bharat shops online. For entrepreneurs, its trajectory is a good reminder that the most profitable opportunities often dwell beyond the glare of metros. As CityMall expands into new towns and draws in more local leaders, it is building something more than a successful business; a movement that is rooted in trust and empowerment. Its story is still unfolding, but every new development; including on Wednesday's reports of Amazon deal-making — is a reminder of the strength of thinking differently about where India's future markets truly are.
