Source: Entrackr
CityMall, the Gurugram-based social e-commerce start-up, is seeking to raise ₹334 crore ($38 million) in a fresh round of investment, which is a Series D. The funding is to be led by Accel and include existing investors Waterbridge Ventures, Elevation Capital, and Norwest Capital, Citius, General Catalyst and angel investor Rohit Agarwal.
This is CityMall’s first major fundraising in over three years. The company last raised $75 million in March 2022 during its Series C round.
On the Investor Participation
CityMall’s board has approved the issue of 7,278 Series D preference shares and one equity share at an issue price of ₹4,58,716 each, according to the company’s regulatory filing with the Registrar of Companies (RoC).
The round will comprise:
- Accel: ₹173.2 crore ($19.7 million)
- Waterbridge Ventures: ₹52 crore ($5.9 million)
- Citius: ₹48.38 crore ($5.5 million)
- Norwest Capital: ₹25.96 crore ($2.95 million)
- Elevation Capital: ₹21.65 crore
- General Catalyst: ₹8.67 crore
- Rohit Agarwal: ₹4 crore
The firm intends to use the fresh capital for capital expenditures, marketing efforts, and other general corporate items.
Flat Valuation
According to estimates, CityMall’s valuation is roughly ₹2,780 crore ($316 million), the same amount as in its Series C round. This means that the company’s new round was raised at a flat valuation, and this can change if more money is added to the round.
Business Model and Growth
Founded in 2020, CityMall is a social commerce platform that serves customers in tier II & tier III cities. The company operates a network of community resellers who connect with local buyers and assist with product delivery.
CityMall’s product range includes groceries, daily essentials, FMCGs, home, and kitchen products. The startup intends to expand into new categories such as beauty and accessories,which could increase its presence and improve margins.
Financial Results
CityMall has yet to submit its FY25 financial results. However, CityMall recorded a growth of 23% year-on-year in gross merchandise value (GMV) in FY24, with the GMV rising to ₹427 crore from ₹346.4 crore in FY23.
Company revenue grew, but the losses grew 10% to ₹159 crore in FY24 versus the previous year. This shows that despite CityMall growing, it has not yet gained control over its costs and is not getting any closer to making a profit.
