CityMall Success Story: Building Bharat-First E-Commerce from the Ground Up

Introduction

In India's vast and diverse e-commerce universe, CityMall stands out—not by racing for ultra-fast delivery, but by becoming the go-to platform for value-conscious consumers in Tier II, III, and IV towns. Founded in 2019 , today it has become a symbol of how “Bharat-first” commerce can thrive—amassing strong revenue, scaling intelligently, and earning the trust of top investors.

Founding Vision: From Metro Hype to Bharat Reality

CityMall was birthed by IIT alums Angad Kikla, Naisheel Verdhan, and Rahul Gill , who saw an untapped opportunity: mainstream e-commerce models—fast delivery, hefty discounts—focused almost exclusively on metro cities. The founders wanted something different—a model that built trust, affordability, and community in smaller towns.

They launched a business model driven by local community leaders : these micro-entrepreneurs listed for CityMall, took orders, and handled last-mile fulfillment. For rural consumers on WhatsApp, buying groceries this way felt personal, familiar, and reliable.

Early Struggles: Hustle, Skepticism & a Scalable Model

The early years were far from glamorous. Convincing investors that Bharat had billions in demand—but needed low-cost delivery and modest SKUs—was tough. CityMall leaned into operational efficiency:

• Tiny yet tailored assortment —half the SKUs of quick-commerce platforms, but more than typical value stores.
• Next-day delivery instead of “10-minute gratification.”
• No delivery fee , undercutting quick commerce with lower costs for customers.

Gradually, this model resonated. Families paying ₹450–₹500 per order for groceries and essentials found CityMall’s affordability and trust far more relevant than flashy delivery vlogs.

Growth, Funding, and Scaling Up

CityMall's revenue soared from ₹15.2 crore in FY21 to ₹459 crore in FY24 —a stunning 21× scale three years.

The startup raised a total of $165 million to date across Series A through D. Notably, in early September 2025, CityMall closed a $47 million Series D , led by prominent venture capital firm Accel , joined by Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest, and Jungle Ventures.

The valuation remained steady at $320 million , indicating investor confidence in the business fundamentals—not hype.

The Business Model: Low Cost Meets Local Trust

Rather than chasing metros, CityMall focused on the underserved:

• 60+ cities across the NCR, UP, Bihar, Haryana, and Uttarakhand now operate on its network.
• Customers: income ₹15k–₹80k/month.
• Average order size: ₹450–₹500.

By combining:

1. Private label partnerships for higher margins,
2. Community leader networks for low-cost distribution, and
3. Tech-enablement for lean logistics,

CityMall created a value-first model that is scalable, viable, and deeply rooted in Bharat’s realities.

Current Standing: Revenue Up, Losses Still Tapering

• FY24 Revenue : ₹460 crore (up 22% from FY23’s ~₹376 crore).
• FY24 Net Loss : ₹159 crore (up from ₹137 crore in FY23).

While losses are rising—common in growth-focused startups—they reflect deliberate reinvestment into infrastructure and expansion rather than misguided marketing. Analysts note CityMall has now achieved operational breakeven in parts of its distribution network.

Inspiring Highlights

1. Bharat-First Impact

CityMall echoes a philosophy deeply mastered by founders: Empower underserved communities with value, not excuses. If Blinkit chased quick delivery in metros, CityMall built affordability in small towns.

2. Smart Scaling

Revenue growth without valuation hype. $165M raised, valuation held steady—an investor-backed validation of fundamentals over flash.

3. Community-Driven Spark

Micro-entrepreneurs on WhatsApp become resellers, creating self-sustaining demand and building local trust.

4. Global-Grade Investors

Securing backing from Accel, Norwest, General Catalyst shows big-name confidence in alternative models.