Gurugram-based grocery e-commerce platform CityMall reported operating revenue of ₹534 crore for the financial year ended March 2025, marking a 25% year-on-year rise. The performance reflects growing traction in tier II and III markets where demand for everyday staples is rising amid accelerating digital adoption.
Grocery staples drive sales mix
Product sales accounted for about 96% of CityMall’s operating revenue, or roughly ₹512 crore, underscoring the company’s grocery-led model. Essential staples—atta (flour), sugar, edible oil and ghee—contributed nearly 40% of product sales, amounting to approximately ₹210 crore.
Other categories showed steady contributions: branded food and beverages generated about ₹85 crore, while home and personal care products added close to ₹58 crore. The broader product assortment indicates CityMall’s push to become a one-stop destination for daily household needs in smaller towns.
Costs remain elevated, profits under pressure
Despite healthy top-line growth, CityMall’s cost base stayed high. The cost of procurement made up about 72% of total expenses, rising to nearly ₹510 crore in FY25. Additional increases in logistics, warehousing, employee expenses, rent, technology investment and provisions for slow-moving inventory further weighed on margins.
As a result, the platform recorded a net loss of around ₹159 crore for FY25, broadly flat year-on-year. The figures suggest that while revenue expansion is intact, achieving operational efficiencies and margin improvement remains critical for a sustainable path to profitability.
Funding, market context and outlook
CityMall has raised over $150 million from venture capital investors since inception, reflecting sustained investor confidence in its focus on “Bharat” markets and high-frequency essential purchases. The company’s positioning aligns with broader sector trends—rising smartphone penetration, wider use of digital payments and supply-chain innovations—that are reshaping India’s grocery e-commerce landscape.
Going forward, CityMall’s ability to optimise supply-chain operations, improve gross margins and curb operating costs will be central to converting scale into sustained profitability. With ₹534 crore in revenue and strong penetration in smaller cities, the company remains a notable player in India’s evolving online grocery market.
