CityMall, the Gurugram-based grocery-focused e-commerce platform catering primarily to tier II and III cities, has reported a strong revenue performance for the financial year ending March 2025. According to its regulatory filings, the company’s operating revenue increased to ₹534 crore in FY25, reflecting a 25% year-on-year growth compared to the previous fiscal.
The latest numbers highlight CityMall’s continued efforts to strengthen its grocery-led business model, especially in smaller towns where digital commerce adoption is growing rapidly. While the topline growth signals expanding customer demand, profitability continues to remain a challenge for the company.
Grocery and Essential Staples Lead Revenue Contribution
Product sales remained the backbone of CityMall’s business during FY25. Revenue from the sale of goods accounted for nearly 96% of the total operating revenue, reaching approximately ₹512 crore, marking a healthy jump over FY24 figures.
A major takeaway from the financials is the dominant role played by essential grocery staples. Categories such as atta (flour), sugar, edible oil, and ghee together contributed around 40% of total product sales, translating to roughly ₹210 crore in revenue. This strong demand indicates that everyday essentials continue to be the key purchasing drivers for customers across smaller Indian markets.
Beyond staples, other segments also performed steadily. Branded food and beverages contributed around ₹85 crore, while home and personal care products added nearly ₹58 crore. The remaining revenue came from a mix of other consumer categories, showcasing CityMall’s expanding product basket aimed at becoming a one-stop solution for daily household needs.
Rising Costs Keep Profits Under Pressure
Despite the solid revenue increase, CityMall’s overall cost structure remained heavy. The cost of procurement of goods formed the largest share of expenditure, accounting for approximately 72% of total expenses, rising to nearly ₹510 crore during FY25.
In addition to procurement costs, the company also incurred higher spending on logistics, warehousing, employee benefits, rent, technology infrastructure, and provisions related to slow-moving or obsolete inventory. As a result, total expenses grew significantly, limiting margin expansion.
CityMall reported a net loss of around ₹159 crore for FY25, which remained largely flat compared to the previous year. While losses have not widened dramatically, the numbers underline the ongoing need for operational efficiency improvements and tighter cost management to move towards profitability.
Investor Backing and Growth Outlook
CityMall has raised substantial capital since its inception, securing over $150 million in funding from marquee venture capital firms. The platform continues to attract investor interest based on its strong foothold in Bharat markets and its focus on high-frequency essential purchases.
The e-commerce grocery sector in India is witnessing rapid structural shifts, driven by increasing smartphone penetration, digital payments adoption, and supply chain innovations. CityMall’s emphasis on everyday staples positions it well within this trend, as essentials tend to create consistent, repeat demand.
Going forward, the company’s ability to optimise supply chain operations, improve gross margins, and reduce operational inefficiencies will determine its path toward sustainable growth. With ₹534 crore in revenue and strong penetration in smaller cities, CityMall has reinforced its relevance in India’s evolving grocery e-commerce landscape.