Meesho Rival CityMall Bags $47 Mn To Expand Private Labels Portfolio

Delhi NCR-based social commerce startup CityMall has raised $47 Mn (around INR 414 Cr) in its Series D funding round led by Accel, with participation from existing investors including Waterbridge Ventures, Citius, General Catalyst, Elevation Capital, Norwest Venture Partners, and Jungle Ventures.

The startup, which competes with the likes of Meesho, Amazon Bazaar, and other marketplaces that target Tier III and Tier IV cities, will use the funds to expand its delivery and distribution network, private label portfolio, build brand partnerships, and hire top talent across technology, product, and operations.

With this round, the startup’s total funding stands at $165 Mn. It last raised $75 Mnin its Series C round, backed by Norwest Venture Partners and Citius VC.

Founded in 2019 by Angad Kikla, Naisheel Verdhan, and Rahul Gill, CityMall offers grocery, FMCG products, white goods, electronics, and fashion in Tier III and Tier IV towns.

The company operates as a marketplace connecting community leaders (resellers) with local buyers. Leaders receive bulk deliveries from CityMall and distribute them to customers. Its app is available on Google Play and App Store.

CityMall is now present in 60+ cities across Delhi NCR, Uttar Pradesh, Haryana, Uttarakhand, and Bihar, and claims a 2x year-on-year growth trajectory in recent years.

On the financial front, the company’s operating revenue rose 21.3% to INR 427 Cr in FY24 from INR 352 Cr in FY23, with product sales contributing about 91.7% at INR 391.57 Cr. However, its net loss widened 9.6% to INR 159 Cr in FY24 from INR 145 Cr in the previous year.

As per Inc42’s State Of Indian Ecommerce H1 2025, Infocus: Quick Commerce, ecommerce market is on track to reach around $400 Bn by 2030, growing from around $138 Bn in 2024 with a steady CAGR of 19%.

The report further pointed out that there are at least 5.1K startups in the ecommerce segment in India, raising a cumulative funding of $35 Bn+ to date.

Much of this growth will come from smaller cities and rural India, driven by rising internet access, affordable data, expanding credit to consumers and small enterprises, and the boom in quick commerce, driven by startups like Blinkit, Zepto, and Swiggy Instamart among others.

CityMall aims to tap this opportunity by removing intermediaries, aggregating demand, and building a tech-enabled supply chain at affordable prices. However, more and more marketplaces are moving towards the affordable and unbranded category to target less affluent Indians outside the metros.

Besides Meesho, CityMall will go up against the likes of Flipkart, Amazon, Snapdeal, Tata-owned BigBasket as well as quick commerce platforms that are increasingly targeting users in Tier III and Tier IV India.

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