Citymall, a rapidly growing Indian grocery delivery startup, has closed a $47 million funding round to expand its footprint and challenge the dominance of ultra-fast delivery (UFD) leaders in the country’s competitive e-grocery market. The Series C round was co-led by existing investor Tiger Global and new participant General Atlantic, with additional contributions from previous backers like Elevation Capital and Accel India. The funds will be directed toward scaling operations in smaller Indian cities, enhancing its supply chain infrastructure, and refining its “community-focused” delivery model— a key differentiator from rivals like Zepto and Swiggy Instamart.
Founded in 2022, Citymall has carved a niche by prioritizing neighborhood-centric fulfillment over the hyper-fast (10–15 minute) delivery promises of larger competitors. Instead of relying on centralized warehouses, the startup partners with local mom-and-pop stores (known as “kiranas” in India) to serve as fulfillment hubs. This approach not only reduces delivery costs and carbon footprints but also strengthens ties with local communities— a strategy that has resonated in tier-2 and tier-3 cities, where kiranas remain the primary source of grocery shopping for most households.
Currently operational in 35 Indian cities—including Jaipur, Ahmedabad, and Chandigarh—Citymall plans to use the new funding to enter 25 more smaller cities by the end of 2025. The startup also aims to double its network of partner kiranas from 5,000 to 10,000, while investing in technology to optimize inventory management and order routing for its local partners. “Our model is built on empowering local retailers, not replacing them,” said Citymall CEO Arjun Sinha in a statement. “Ultra-fast delivery giants often prioritize speed over sustainability and community impact—we’re proving there’s a better way to serve India’s grocery shoppers, especially in cities where kiranas are the backbone of daily life.”
The funding comes at a time of intense competition in India’s e-grocery sector. Players like Zepto (valued at $1.4 billion) and Swiggy Instamart (backed by SoftBank) have poured billions into marketing and warehouse expansion to capture market share, focusing heavily on India’s metro cities. However, their hyper-fast models have faced criticism for high operational costs, frequent stockouts, and reliance on gig workers paid low wages. Citymall’s community-driven approach, by contrast, leverages existing local infrastructure to keep costs in check— a factor that has appealed to investors amid growing concerns about profitability in the UFD space.
“Citymall’s ability to combine tech efficiency with local partnerships addresses a critical gap in India’s e-grocery market,” said Lee Fixel, Partner at Tiger Global. “While ultra-fast delivery grabs headlines, most Indian consumers—especially outside metros—value reliability, affordability, and support for local businesses over 10-minute delivery. Citymall’s growth trajectory shows this model can scale.”
General Atlantic, which joins the round as a new investor, highlighted the startup’s potential to drive inclusive growth. “Investing in Citymall aligns with our focus on businesses that create value for both consumers and local communities,” said Sandeep Naik, Managing Director at General Atlantic India. “By empowering kiranas, Citymall is not just building a grocery delivery business—it’s strengthening local economies.”
Citymall has also seen strong user growth, with its customer base expanding 3x in the past year to 1.2 million active users. The startup reports an average order value (AOV) of ₹1,800 ($21.70)—higher than the industry average of ₹1,200–₹1,500—thanks to its focus on bulk and weekly grocery orders rather than last-minute impulse buys. This has helped the startup achieve unit economics that are closer to profitability than many UFD rivals, though it has not yet disclosed when it expects to turn a profit.
Looking ahead, Citymall plans to introduce new features like subscription-based weekly grocery deliveries and personalized product recommendations to boost customer retention. It also aims to expand its product range beyond groceries to include household essentials and local specialty items— further differentiating itself from competitors that focus on fast-moving consumer goods (FMCGs).
As India’s e-grocery market continues to grow—projected to reach $100 billion by 2027, per a report by Bain & Company—Citymall’s $47 million funding round signals that investors are increasingly betting on models that balance scale with sustainability and community impact. For the startup, the funds will be critical to competing against deeper-pocketed rivals while staying true to its mission of empowering local retailers.