Gurugram-based value-commerce startup CityMall is in discussions to raise between ₹400 crore and ₹500 crore, with existing backer Jungle Ventures expected to lead the proposed funding round, according to people familiar with the matter cited by The Economic Times.
The transaction has not been announced as completed. If the talks result in a deal on the terms currently being discussed, the round could value CityMall at approximately ₹4,000 crore, according to the report. New investors as well as some of the company's existing shareholders are expected to participate.
The potential fundraise comes as CityMall expands a value-focused ecommerce model aimed primarily at consumers outside India's largest metropolitan markets, positioning affordability rather than ultra-fast delivery as a central part of its strategy.
CityMall Could See Its Valuation Rise
The proposed ₹400–500 crore financing would mark another significant capital infusion for CityMall.
The Economic Times reported that the company could be valued at roughly ₹4,000 crore in the proposed transaction, compared with around ₹3,000 crore when it last raised capital. Because the latest financing remains under discussion, the final investment amount, participants and valuation could still change.
CityMall previously raised $47 million in a funding round led by Accel in 2025. That financing combined equity and debt, with CEO and co-founder Angad Kikla saying $41 million came through equity and the remainder through debt. Existing investors including Jungle Ventures, General Catalyst, Elevation Capital, Norwest Venture Partners, WaterBridge Ventures and Citius participated.
The company had earlier raised $75 million in 2022, in a round led by Norwest Venture Partners.
Jungle Ventures Set to Double Down
Jungle Ventures is already an investor in CityMall, making its reported role as lead investor in the new round notable.
According to the latest reporting, the existing backer is looking to increase its exposure to CityMall, while both new and current investors are expected to participate in the transaction.
The potential investment also comes amid renewed investor interest in commerce businesses designed for value-conscious consumers in smaller Indian cities and towns.
Revenue Reaches Around ₹1,000 Crore in FY26
CityMall's recent growth helps explain the timing of the fundraising discussions.
The company's revenue nearly doubled to approximately ₹1,000 crore in FY26, according to The Economic Times. Its private-label business has also become increasingly important, accounting for roughly one-third of grocery net merchandise value (NMV).
In a separate July 2026 interview with Business Standard, Kikla said CityMall ended FY26 with about ₹1,000 crore in sales and was targeting approximately ₹1,600 crore in FY27. He said the company expected to maintain annual growth of roughly 50–60% over the following several years.
The same report quoted Kikla as saying CityMall was unit-economics positive and generated more than ₹20 per order, although profitability varied across its operating cities.
CityMall Takes a Different Route From Quick Commerce
CityMall is pursuing a different customer and delivery proposition from India's major quick-commerce platforms.
Instead of building its proposition primarily around deliveries in minutes, CityMall has focused on price-sensitive households and lower-cost distribution. Its product assortment includes groceries, fast-moving consumer goods, fresh produce and other everyday categories.
That distinction is becoming increasingly important as major ecommerce and quick-delivery companies extend their reach beyond India's largest cities.
The Economic Times noted that CityMall's expansion comes as services including Flipkart Minutes and Amazon Now also move further into tier-II markets and beyond.
CityMall's strategy therefore represents a different bet on India's ecommerce opportunity: that a large group of consumers will prioritise affordability and value over delivery speed.
From 2019 Startup to a Larger Value-Commerce Player
CityMall was founded in 2019 by Angad Kikla, Naisheel Verdhan and Rahul Gill. The Gurugram-based company initially built its business around consumers underserved by conventional ecommerce and quick-commerce models.
Its 2025 funding round took cumulative capital raised to about $165 million, according to reporting at the time.
CityMall has also been expanding private labels and regional brand partnerships, an approach that can give a value retailer greater control over assortment, pricing and margins.
IPO Preparations Also Reportedly Underway
Beyond the immediate fundraising discussions, CityMall is also reportedly beginning preparations for a possible stock-market listing.
A person familiar with the company's plans told The Economic Times that CityMall has started laying the groundwork for a potential IPO over the next six to eight quarters. No formal IPO timetable or filing has been announced, so the listing remains a prospective plan rather than a confirmed transaction.
If the new financing closes, it could therefore provide CityMall with additional capital as it expands while simultaneously preparing its business and financial structure for a possible future public-market debut.
Why the Proposed Funding Matters
The fundraising talks highlight a broader contest over what the next phase of Indian ecommerce will look like.
Quick-commerce companies have demonstrated strong demand for convenience and rapid delivery among urban consumers. CityMall is pursuing another segment of the market: households where price, assortment and affordability may matter more than receiving an order within minutes.
A ₹400–500 crore investment at a reported valuation of about ₹4,000 crore would give CityMall additional resources to pursue that strategy while signalling continued investor interest in ecommerce models built specifically for consumers beyond India's affluent metropolitan customer base.
For now, however, the financing remains under discussion. Until CityMall or the investors formally announce a transaction, the ₹400–500 crore fundraise and roughly ₹4,000 crore valuation should be treated as reported deal terms rather than a completed funding round.
