Accel leads flat-valuation round as Citymall expands value-focused grocery delivery to smaller Indian cities.
Citymall, an Indian e-commerce startup focused on budget grocery delivery in tier 2 and 3 cities, has raised $47 million in Series D funding. The round was led by Accel with participation from Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.
The company’s valuation remains flat at $320 million, the same level as its $75 million Series C round in 2022. Sources told TechCrunch the valuation reflects a 4x multiple of past year revenue. Citymall has raised $165 million to date.
Founded in 2019, Citymall differentiates itself from quick commerce players like BlinkIt, Zepto, and Swiggy Instamart by targeting value-conscious households making planned purchases. CEO Angad Kikla described the model as the “Dmart of the online world,” offering half the assortment of quick commerce apps but double that of offline value stores.
Citymall operates in 60 cities across Delhi NCR, Uttar Pradesh, Haryana, Bihar, and Uttarakhand. The platform reports average order values of ₹450–500 ($5–6) and primarily serves households earning ₹15,000–80,000 per month ($170–910). The company says it is operationally profitable but did not provide a timeline for overall profitability.
The startup initially relied on community leaders for marketing and fulfillment during the pandemic but later streamlined their role to fulfillment only. Its strategy now emphasizes private labels and direct sourcing from manufacturers to keep prices low. Unlike quick commerce rivals, Citymall doesn’t charge delivery fees and typically fulfills orders within a day.
Accel partner Pratik Agarwal said the firm doubled down on Citymall because “online grocery shopping, and the value segment within that, is the largest consumer market in India.”
Waterbridge Capital’s Manish Kheterpal highlighted Citymall’s cost advantage. “Citymall offers cheaper essentials to users who might order a few times a month. The company buys goods directly from suppliers and uses its community leaders to achieve low distribution costs that result in building a healthy gross margin” he said.
The latest funding comes amid intensifying competition in India’s grocery sector, where Bernstein Research estimates online grocery will account for 12% of e-commerce sales this year. Quick commerce platforms are projected by Bloomberg Intelligence to reach 20% of overall e-commerce sales in India by 2035.