Investcorp, a global leader in alternative investments, has completed the Citykart stake sale, exiting its entire holding in one of India’s fastest-growing value fashion retailers.
The stake has been acquired by TPG NewQuest and A91 Partners, marking a significant move in the value fashion segment focused on India’s Tier-2 and Tier-3 cities.
The Citykart stake sale represents the fifth full exit from the firm’s India Consumer Growth Portfolio (ICGP) and the sixth liquidity event for the India franchise in the past 32 months. With the Citykart stake sale, Investcorp underscores its strategy of backing high-growth, consumer-focused businesses in emerging markets.
The operating scale-up has seen the store network expand dramatically from 37 to 137 stores. This leads to an estimated revenue of about $102 million for the financial year 2025.
This growth is mirrored by a matching growth in EBITDA, with sustained industry-leading margins of around 8.3 percent. It has consistently delivered profitability while building core functions, strengthening governance, and attracting strong talent across leadership and mid-management levels.
Furthermore, Investcorp has been instrumental in fostering a strategic partnership with founder Sudhanshu Agarwal, focusing on building a professional second line, integrating the W-Mart acquisition, revitalizing underperforming stores, and optimizing sourcing and inventory processes.
Gaurav Sharma Partner & Head India Private Equity Investcorp India
“Citykart was the very first deal we executed after formally entering India in 2019, and it epitomizes our strategy of backing category-defining, founder-led businesses in high-growth segments. Today’s outcome underscores our ability to generate attractive risk-adjusted returns while supporting India’s consumption story.”
Anshuman Goenka, Partner India Private Equity – Investcorp, commented that, “Partnering with Sudhanshu and the Citykart team to triple the store base, steer the business through the pandemic, and still outperform our underwriting is immensely satisfying. We thank all stakeholders and are confident that TPG NewQuest and A91 will help Citykart accelerate its next growth phase.”
Investcorp’s Citykart Stake Sale aligns with portfolio shift
The Citykart stake sale to TPG NewQuest and A91 Partners highlights growing confidence in India’s value fashion retail segment. Further, this Citykart stake sale comes as part of Investcorp’s broader plan to monetize mature assets and reallocate capital toward new opportunities.
Other recent realizations besides Citykart include the sale of its stake in luggage maker Safari Industries, a profitable exit from eyecare specialist ASG Eye Hospital, a planned IPO-led exit from health-benefits administrator Medi Assist Healthcare, and a partial exit from dialysis network NephroPlus.
Investcorp’s India private equity strategy targets asset-light opportunities across consumer and retail, healthcare, financial services, B2B, and technology. Its active Indian holdings include Global Dental, Wakefit, Canpac, Xpressbees, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and the buy-out of NSE IT, rechristened NuSummit among others, demonstrating Investcorp’s commitment to scaling high-growth businesses while realizing timely liquidity for investors.
