Value commerce firm CityMall, based in Gurugram, is reportedly in talks for a new financing round worth about ₹400-500 crore as it gears itself up for a possible IPO.
As per sources privy to the matter, Jungle Ventures, the current investor of the firm, will lead this proposed deal. Other new as well as current investors might participate in this deal as well. In this round, the firm is likely to be valued at around ₹4,000 crore. This valuation will be an increase from the earlier one of nearly ₹3,000 crore at which the firm had raised funds.
This possible fundraise is coming amid CityMall continuing its efforts to create its consumer base in smaller cities and towns. Presently, CityMall operates in 18 markets which include areas of Uttar Pradesh, Bihar, Delhi-NCR and Haryana.
Additionally, the financial performance of the firm has witnessed substantial growth as well. The revenues of CityMall have more than doubled and reached close to ₹1,000 crore in FY26, while its private label products account for almost a third of its grocery NMV. Increasing contributions from private labels are an essential component of its value-oriented business strategy.
CityMall was founded in 2019 by Angad Kikla, Naisheel Verdhan and Rahul Gill. The startup had already raised $75 million in 2022 and has continued expanding its operations to reach out to non-metro customers since then. The overall strategy of the startup involves selling grocery and daily consumable products along with a logistics infrastructure aimed at servicing price-sensitive customers outside metropolitan cities.
The new round of funding is taking place amid investor enthusiasm towards the businesses related to value and rural commerce startups. Other startups such as Rozana, SuperK and CityKart are also expanding their footprint in smaller towns and villages in the country.
In addition to the aforementioned fundraising efforts, CityMall is also preparing itself for a possible IPO. As per sources privy to the information, the company plans an IPO within the next six to eight quarters, though that depends on both time and how the structure of the IPO develops.
With the completion of the round expected to fetch CityMall between ₹400 to 500 crore, the company will be able to raise more funds in order to consolidate its position in current markets along with developing its growth strategy further. A rise in valuation to ₹4,000 crore from the current ₹3,000 crore will constitute an improvement in valuation.
