CityMall Raises $47 Million in Series D Funding Led by Accel to Expand Value E-commerce in Bharat

Gurugram-based value e-commerce startup CityMall has raised $47 million (₹414 crore) in Series D funding, led by venture capital firm Accel, at a valuation of $320 million. The round also saw participation from existing investors including Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.

The latest funding comes at a flat valuation, slightly below the $350 million mark from CityMall’s previous Series C round. With this raise, CityMall’s total funding has reached $165 million since its inception in 2019. The company had last raised $75 million in 2022, led by Norwest Venture Partners.

CityMall’s Focus on Bharat E-commerce Market

Founded by IIT alumni Angad Kikla and Naisheel Verdhan, CityMall is building a value-first e-commerce platform for Tier-II and Tier-III towns. The startup focuses on affordable products across categories like fashion, home, kitchen, and packaged food, distributed through a community leader-based model that aggregates demand locally.

CityMall said the fresh funds will be used to expand its distribution network in smaller towns, strengthen private label offerings, and improve supply chain efficiency.

Co-founder and CEO Angad Kikla emphasized the company’s mission:

“The next wave of India’s growth will be shaped in small towns. Families here have long overpaid for essentials due to limited choices. By marrying technology with a low-cost distribution model, we are building something meaningful for the next India.”

Accel’s Bet on Value E-commerce

Accel partners Rachit Parekh and Pratik Agarwal highlighted CityMall’s differentiated strategy, saying that the company has reimagined commerce for underserved communities with a low-cost supply chain model that makes e-commerce viable in Bharat markets.

CityMall’s approach focuses on value-conscious consumers in middle- and lower-income households, positioning itself as an affordable alternative to larger e-commerce platforms.

CityMall’s Growth and Challenges

The company reported ₹460 crore revenue in FY24, up 22% from ₹376 crore in FY23. However, losses widened to ₹159 crore in FY24 compared to ₹137 crore in FY23, reflecting its heavy investments in technology, logistics, and expansion.

Despite the challenging funding environment, investors are backing Bharat-first e-commerce platforms like CityMall, Meesho, and DealShare, which are tapping into India’s fast-growing small-town markets.

With Accel leading the Series D round and continued support from existing investors, CityMall is betting that its cost-efficient distribution model and Bharat-first strategy will help it capture a significant share of India’s value e-commerce market.