New Delhi, May 27 -- TPG NewQuest, a secondaries-focused private equity firm, and growth-stage investor A91 Partners have invested in fashion retailer Citykart in a Series B round that led to the exit of Bahraini alternative investment firm Investcorp.

The total size of the round was Rs 538 crore ($63 million), Citykart said in a statement on Tuesday. This comprised Rs 120 crore in primary capital infusion and Rs 418 crore in secondary transactions in which Investcorp has made a full exit.

Mid-market PE firm India SME Investments continues to hold a minority stake in Citykart, the company said.

The fundraise comes after VCCircle reported earlier this month that Citykart was in advanced discussions with A91 and TPG NewQuest to raise funding.

The company had raised Rs 100 crore in 2019 from IDFC Alternatives and India SME Investments in 2019. IDFC Alternatives' PE business was later acquired by Investcorp.

The Gurugram-based retailer said the primary infusion will help it accelerate its expansion plans in the footprint category and product assortment. It also aims to expand its store network to 300 from the current 137 stores, it said, without providing a timeline. The company is growing at a rate of 40% and said it is eyeing a revenue target of Rs 1,300 crore.

"The capital infusion will help us grow deeper and wider, invest in innovation, and build a strong, future-ready organisation focused on scale and operational excellence," said Sudhanshu Agarwal, co-founder, Citykart.

EY India acted as the sole financial advisor to the transaction.

Citykart was founded in 2015. It offers clothing for men, women, and kids. It also sells footwear, accessories, home furnishings, general merchandise, toys, and utility items. The company launched its first store in Lucknow in 2016 and now has stores across 91 cities in 11 states.

The company posted revenue from operations of Rs 626 crore for FY24, up 19% from Rs 524 crore for FY23. Its net profit was Rs 12.5 crore, compared with a loss of Rs 4.4 crore the year before, according to VCCEdge.

Citykart competes with the likes of Mumbai-listed retailers Vishal Mega Mart, V-Mart Retail, V2 Retail, Baazar Style Retail Ltd, among others. Other prominent retailers in India include Tata Group's Trent Ltd., Aditya Birla Fashion & Retail Ltd, Shoppers Stop, and the unlisted Reliance Retail.

Published by HT Digital Content Services with permission from VC Circle.