Investcorp has sold its entire stake in Citykart to TPG NewQuest and A91 Partners.

Citykart is a value retailer focused on Tier-2 and Tier-3 towns in India.

This marks Investcorp’s fifth complete exit from its India Consumer Growth Portfolio and its sixth liquidity event in 32 months.

Citykart has expanded from 37 to 137 stores and is expected to generate 8.8 billion rupee (US$103.1 million) in revenue for FY2025.

The company has reported profitability, growth in EBITDA, and strong margins.

Investcorp supported Citykart’s growth by strengthening management, optimizing processes, and integrating W-Mart’s acquisition.

🔗 Source: Investcorp

🧠 Food for thought

1️⃣ Private equity firms increasingly target India’s tier-2 and tier-3 retail markets

Investcorp’s successful exit from Citykart highlights a growing trend of private equity investment in India’s smaller-city retail sector.

Citykart’s expansion from 37 to 137 stores under Investcorp’s ownership demonstrates the substantial growth potential in underserved markets outside metropolitan areas.

The company targets non-metro cities with affordable fashion and household products, serving over 10 million customers with plans to reach 250+ retail outlets in coming years 1.

This investment pattern reflects Investcorp’s broader strategy in India, where they focus on “consumption-driven sectors” with sustainable business models targeting the mass market 2.

Other private equity firms are following similar strategies, as evidenced by TPG NewQuest and A91 Partners’ willingness to acquire the growing retailer, suggesting continued confidence in tier-2 and tier-3 retail opportunities.

This exit represents Investcorp’s fifth full divestment from its India Consumer Growth Portfolio in just 32 months, indicating both the maturity of these investments and strong buyer interest in businesses serving India’s emerging consumer markets.

2️⃣ Value creation through operational transformation, not just financial engineering