Popular chain of retail stores dealing in value apparel CityKart is reportedly in talks with A91 Partners and TPG NewQuest to raise around $35-40 million.
Investment Talks for CityKart are Heating Up
This comes amidst rising competition from rivals like Vishal Mega Mart. Speaking on the investment talks a source told Moneycontrol: “The talks are in progress and due diligence between the parties is ongoing,”
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The source continued: “Out of the total fundraise, secondary share sales will amount to around $25 million (Rs 210 crore) and the remaining $10-15 million (Rs 85-130 crore) will be the primary capital that will go into the company’s coffers.”
CityKart Going Through a Period of Change
Another source explained: “Citykart’s early backers like Investcorp and India SME Investments will dilute some stake and sell shares to TPG NewQuest.” The deal is still in the negotiation stage and details might change.
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Citykart is currently valued between $160-180 million (Rs 1,350-1,500 crore), driven by annual sales of approximately $80-90 million (Rs 765 crore), reflecting a 2X revenue multiple, according to sources. This multiple is notably lower than the 4-5X multiple expected for Vishal Mega Mart in the public markets.
