Group Buying Startup Citymall Raises $75M in Series C Funding Round

Citymall has announced it has secured $75 million in Series C funding led by Norwest Venture Partners, said the group buying platform where consumers come together for bulk purchases at discounted prices.

This is the startup’s third fundraising round in the past 18 months, bringing total capital raised to $110 million. General Catalyst, Citius, Jungle Ventures, Arena Ventures, Elevation, Accel and Waterbridge also participated in the round. Jungle Ventures raised its investment from a Series B funding round, bolstering the investor’s belief in community-based e-commerce in India.

Citymall, which serial entrepreneurs Angad Kikla and Naisheel Verdhan founded in 2019, aims to bring e-commerce to consumers in Indian cities. The company is targeting the 500 million first-time internet users in these cities where traditional e-commerce has failed to penetrate because direct-to-customer supply chains are not viable for low-cost users living in distant towns.

Through its network of community leaders who serve as both marketing partners and logistics partners for the company, Citymall provides access to e-commerce to these e-commerce dark cities. Community leaders work on a commission-based model where they use their social network to invite friends and family members to form a shopping team to earn discounts.

The company has grown rapidly over the past 18 months, growing more than 30% month over month, while creating entrepreneurial opportunities for more than 30,000 community leaders in 25 cities . Around 80% of Citymall users have never transacted on an e-commerce platform before. On average, 10 consumers place an order with a particular community leader, and the metric increases.

“Shopping habits in India’s small towns involve significant offline support and social proof. The ticket size of these purchases is also 1/3 of what we have in metropolitan cities. Citymall’s community not only assist new e-commerce users with their purchases, but also act as demand aggregation points, creating a highly efficient supply chain that can support small ticket sizes,” said Angad Kikla, co-founder of Citymall.

Citymall will use the new funds to strengthen management and engineering teams, introduce new categories, expand the supply chain and expand its reach to 100 cities over the next 18 months.

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