The competition has proved to be a sharp learning curve for the Foxes youngsters, who once again gave a good account of themselves before ending up on the wrong side of a five-goal thriller in Seagrave.
Centre-back Kevon Gray opened the scoring for the Foxes 10 minutes ahead of the interval, before a quick-fire Fritz Fleck double saw the visitors turn things around before half-time.
Wael Mohya then struck for Monchengladbach to further extend their advantage, prior to Logan Briggs converting a late penalty, though it wasn't enough for us to earn a first group stage point.
The result leaves us eighth in Group B, following three defeats from three, with Danish outfit FC Nordsjælland up next in the tournament on Tuesday 9 December. Attention turns back to Premier League 2 later this week, meanwhile, hosting Birmingham City on Friday (both 7pm GMT kick-offs).
The details...
City: Bausor (Donohue 45'), Aluko (Toko 59'), Khela, Gray (Diallo 59'), Ali; Onanaye, Lawrence; Richards (Carr 59'), Briggs, Omobolaji; Otchere (Hutchinson 69').
Unused subs: Akolbire, Popov.
Goals: Gray 35', Briggs 84' (pen).