Archive · 15 Dec 2025
CityMall Struggles to Deliver Amid Expansion
CityMall is an online shopping app that delivers groceries and other products to smaller towns in India.
It started in 2019 and has grown quickly, but it's having some problems.
Some customers have had orders canceled or delayed, and the company is working to fix these issues.
CityMall is trying to build more warehouses and improve its delivery system to serve more people.
It's also dealing with some fraud and other challenges, but it has made some progress in reducing costs.
The company hopes to become the go-to app for grocery shopping in these towns, but it still has a lot of work to do to make sure deliveries are reliable and customers are happy.
CityMall faces operational challenges, including delivery delays and order cancellations, leading to customer dissatisfaction.
The company is expanding its supply chain with new warehouses to meet growing demand and improve reliability.
CityMall's business model focuses on low-cost supply chains and community-led demand generation, targeting tier-2 and tier-3 towns.
Despite challenges, CityMall has reduced its supply chain costs significantly and is working on improving customer experience and fraud prevention.
The company's success depends on its ability to scale efficiently and meet the evolving expectations of customers in smaller towns.
- Who
- CityMall, an e-commerce platform targeting tier-2 and tier-3 towns in India, primarily selling groceries and lifestyle products.
- What
- CityMall is facing operational challenges, including delivery delays, order cancellations, and fraud, while expanding its supply chain to meet growing demand.
- When
- The company was founded in 2019 and has been scaling up since then, with recent investments and warehouse expansions.
- Where
- CityMall operates in about 60 cities across Bihar, Uttar Pradesh, and Haryana.
- Why
- CityMall aims to become the default grocery delivery app for smaller towns in North India, focusing on low-cost supply chains and community-led demand generation.
- Founded
- 2019
- Founders
- Angad Kikla, Naisheel Verdhan, Rahul Gill
- Primary Business
- Groceries (80%) and lifestyle products
- Operating Regions
- Bihar, Uttar Pradesh, Haryana
- Revenue FY24
- ₹427 crore
- Losses FY24
- ₹159 crore
- Investment
- Over $150 million from investors like Elevation Capital and Accel
- Average Order Value (Groceries)
- ₹400-450
- Supply Chain Cost per Order
- ₹50 (down from ₹100)