In a continuous endeavour to expand its footprints across various small towns and cities, Citykart has recently raised `100 crore from IDFC Alternatives and India SME Investments in equity. The investment, a first for the value apparel retail chain through external funding, will not just allow Citykart to expand its asset-light fashion retail model into Tier II, III and IV towns in Jharkhand, Orissa, Chhattisgarh, Uttar Pradesh, Bihar and the North East, but also strengthen its back-end operations.
Talking about the funding, Sudhanshu Agarwal, Founder and CEO, Citykart said, “At Citykart, we have witnessed a definite shift of consumers from unorganised to organised retail, especially in Tier II, III and IV cities and towns. The newly increased purchasing power and aspiration for a quality shopping experience are signaling significant traction and demand for fast fashion apparel at affordable prices in these towns. While our TG resides in these cities, this new funding will further help us in addressing this large and untapped opportunity in these markets.”
Ravi Prakash Singh, General Manager, Citykart, spoke about the company’s strength in supply chain operations. He said, “Automating supply chain operations has become a must to future proof businesses, addressing needs of wired customers. To reach our ambitious goal of making fast fashion accessible to customers in small town and cities, we have also invested in deft inventory management – a system of record that keeps a rigorous control over stock and highlights the critical areas related to sales and stock numbers. We aim to strengthen these capabilities further to increase efficiency and bottom line of our business.”
With an average store size of 8,000-10,000 sq. ft., Citykart has doubled their store count from 18 to 40 in the last two years. They now aim to open 100 new stores in the next two years.
Unlike many large retailers who focus heavily on grocery, Citykart focuses on family fashion retail through its affordable and value for money products addressing all age group.