CityMall, a Gurugram-based grocery e-commerce platform focused on tier II and III markets, reported operating revenue of ₹534 crore for the year ended March 2025, a 25% year‑on‑year increase. The performance underscores rising consumer adoption of online grocery purchases in smaller towns, even as profitability remains under pressure.
Grocery staples drive sales
Product sales comprised the vast majority of CityMall’s revenue in FY25, with sale of goods contributing roughly 96% of operating income, or about ₹512 crore. Essential staples were the primary drivers: atta, sugar, edible oil and ghee together accounted for around 40% of product sales, approximately ₹210 crore.
Other categories also showed steady traction. Branded food and beverages generated around ₹85 crore, while home and personal care items added nearly ₹58 crore. A broader product mix reflects the company’s push to become a one‑stop source for daily household needs in smaller Indian markets.
Costs weigh on margins
Despite healthy top‑line growth, CityMall’s cost base remained elevated. Procurement of goods represented the largest expense, about 72% of total costs, rising to nearly ₹510 crore in FY25. Higher outlays on logistics, warehousing, employee benefits, rent, technology and provisions for slow‑moving inventory further expanded total expenses.
The company reported a net loss of approximately ₹159 crore for FY25, largely unchanged from the prior year. The stable but sizable loss highlights the importance of improving operational efficiencies and margin management to progress toward profitability.
Funding, market positioning and outlook
Since inception, CityMall has raised more than $150 million from prominent venture capital investors, financing its expansion in Bharat markets. The platform’s focus on high‑frequency essentials positions it well amid rising smartphone penetration, digital payments adoption and ongoing supply‑chain innovation in India’s e‑grocery sector.
Going forward, CityMall’s prospects will hinge on its ability to optimise supply chains, improve gross margins and tighten operating costs. With ₹534 crore in revenue and growing penetration in smaller cities, the company has reinforced its significance in India’s evolving grocery e‑commerce landscape.
