Investcorp has sold its stake in Citykart, a leading Indian value fashion retailer, to TPG NewQuest and A91 Partners, marking a successful exit from its investment strategy in India's fast-growing consumer market.

Target Information

Investcorp, a prominent global alternative investment firm, has announced the successful sale of its complete stake in Citykart, one of India's leading value fashion retailers that caters to Tier-2 and Tier-3 markets. The transaction was executed with TPG NewQuest and A91 Partners and marks the fifth full exit from Investcorp's India Consumer Growth Portfolio (ICGP) and the sixth liquidity event within its India operations over the last 32 months.

Citykart has experienced remarkable growth, expanding its store footprint from 37 to an impressive 137 locations. This rapid expansion has resulted in a projected revenue of INR 8.8 billion (approximately US $102 million) for the fiscal year 2025. Notably, Citykart has maintained significant EBITDA margins of around 8.3%, consistently delivering profitability while enhancing core operations, strengthening governance structures, and attracting top talent at various leadership levels.

Industry Overview

The value fashion retail industry in India is witnessing a transformative phase, characterized by a shift in consumer preferences towards affordable yet trendy apparel. As urbanization continues to rise, Tier-2 and Tier-3 towns are showing increasing de