Bahrain’s Investcorp, one of the Gulf’s largest investment firms, has announced the sale of its stake in the Indian budget retailer Citykart. This marks Investcorp’s fifth exit from its India-focused Consumer Growth Portfolio and the sixth liquidity event for the company’s Indian investments in the past 32 months.

The stake in Citykart was acquired by TPG NewQuest and A91 Partners. Citykart operates primarily in Tier-2 and Tier-3 towns in India, where consumer spending has increased since the peak of the Covid-19 pandemic. Investcorp originally invested in Citykart in 2019.

Citykart currently boasts a network of 137 stores and is projected to achieve an estimated revenue of Rs8.8 billion (approximately $102 million) for the fiscal year 2025. A statement from Investcorp highlighted that this growth is accompanied by a corresponding increase in EBITDA, maintaining industry-leading profit margins.

Over the years, Investcorp has cultivated a strategic partnership with Citykart’s founder, Sudhanshu Agarwal, focusing on building a professional leadership team and integrating the acquisition of W-Mart, as well as revitalizing underperforming stores.

Recently, several Gulf Cooperation Council (GCC) entities, including Mubadala and the Public Investment Fund (PIF), have committed substantial funding to Indian businesses, spanning established giants like Reliance and Adani Group, as well as emerging technology firms.

Gaurav Sharma, Partner and Head of India Investments at Investcorp, remarked, “Citykart was the very first deal we executed after formally entering India in 2019. It epitomizes our strategy of backing category-defining, founder-led businesses in high-growth segments.” He noted that this exit underscores Investcorp’s capability to generate attractive risk-adjusted returns while contributing to India’s consumption growth.

Investcorp has previously sold its stake in luggage manufacturer Safari Industries and achieved a profitable exit from ASG Eye Hospital, a specialist in eye care. The firm also plans an IPO-led exit from Medi Assist Healthcare, which manages health benefits, and a partial exit from the dialysis network NephroPlus.

Currently, Investcorp’s active investments in India include Global Dental, Wakefit, Canpac, Xpressbees, Zolo, Freshtohome, Intergrow Brands, Unilog, V-Ensure, and the acquisition of NSE IT.