Bahrain fund manager Investcorp in full exit from Indian retailer Citykart

Dubai: One of the Gulf's biggest investment firms, Bahrain's Investcorp has sold its stake in the Indian budget retailer Citykart.

This is Investcorp's fifth such exit from its India-focused Consumer Growth Portfolio - and the sixth 'liquidity event for the India franchise' in the last 32 months.

The Citykart stake was bought by TPG NewQuest and A91 Partners. The Indian retailer focuses on Tier-2 and Tier-3 towns in India, where consumer spending has been on the rise since the peak-Covid times.

Investcorp made its stake purchase in Citykart in 2019.

The retailer now has a store network of 137 outlets and with an estimated revenue of Rs8.8 billion (about $102 million) for FY2025. "This growth is mirrored by a matching growth in EBITDA, with sustained industry leading margins," said a statement.

Investcorp has through the years fostered a 'strategic partnership' with Citykart founder Sudhanshu Agarwal, and focusing on building a professional second line. It has also seen the integration of the W-Mart acquisition as well as 'revitalising under-performing stores'.

In the recent past, multiple GCC-based entities such as Mubadala and PIF have committed significant funding to businesses based in India, whether these are the established names such as Reliance or Adani Group or fairly new tech entities.

“Citykart was the very first deal we executed after formally entering India in 2019," said Gaurav Sharma, Partner and Head of India Investments at Investcorp. "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."

Investcorp has already sold its stake in luggage maker Safari Industries, and there was a 'profitable exit' from eyecare specialist ASG Eye Hospital. There is also the planned IPO-led exit from health-benefits administrator Medi Assist Healthcare, and a partial exit from dialysis network NephroPlus.

The Bahrain company's active Indian holdings include Global Dental, Wakefit, Canpac, Xpressbees, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and the buy-out of NSE IT.