Citykart Sale: Investcorp Offloads Stake to TPG NewQuest and A91 Partners
Deal News | May 27, 2025 | Investcorp
Investcorp announced the full divestment of its stake in Citykart, an expanding retail chain in India's Tier-2 and Tier-3 towns, to TPG NewQuest and A91 Partners. This move marks the fifth complete exit from Investcorp's India Consumer Growth Portfolio and is among its six liquidity events over a span of 32 months. Under the stewardship of Investcorp, Citykart expanded its retail footprint from 37 to 137 stores, resulting in an anticipated revenue of INR 8.8 billion for FY 2025 alongside robust profitability metrics. Investcorp's partnership with Citykart's founder included strategic expansions and operational enhancements, embodying its investment strategy in India. Other divestments by Investcorp include Safari Industries and ASG Eye Hospital, among others, demonstrating its strong presence and strategic involvement in India's high-growth sectors.
Sectors
- Private Equity
- Retail
- Consumer Goods
Geography
- India – The focus of Citykart's operations and Investcorp's strategic investment lies within the Indian market.
Industry
- Private Equity – The sale of a company stake by Investcorp demonstrates activity in the private equity sector, involving strategic investment and divestment processes.
- Retail – Citykart operates in the retail sector, focusing on value fashion retail in Tier-2 and Tier-3 towns in India.
- Consumer Goods – Investcorp's India portfolio target, Citykart, represents the fast-moving consumer goods space, focusing on fashion retail.
Financials
- INR 8.8 billion (about US $102 million) – Estimated revenue for Citykart for FY 2025, illustrating the financial scale of the company at the time of acquisition.
- 8.3% – Citykart's EBITDA margin, reflecting its profitability under Investcorp's management.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Investcorp | Seller | Company | A global alternative investment manager with a strategic focus on high-growth, founder-led businesses. |
| Citykart | Target Company | Company | A rapidly growing value fashion retailer in India targeted at Tier-2 and Tier-3 towns. |
| TPG NewQuest | Buyer | Company | An investment firm involved in acquiring Investcorp's stake in Citykart. |
| A91 Partners | Buyer | Company | A private equity firm participating in the acquisition of Citykart from Investcorp. |
| Sudhanshu Agarwal | Founder | Person | Founder of Citykart, involved in strategic expansions and leadership growth at the company. |
| Gaurav Sharma | Partner & Head of India Investments | Person | Executive at Investcorp, responsible for overseeing India investments. |
| Anshuman Goenka | Partner India Private Equity | Person | An executive at Investcorp focusing on the Indian private equity market. |