Cryopreservation is a process which preserves cells, tissues, and other biological samples by cooling the samples to very low temperatures along with the use of cryoprotecting agents (CPA). In this paper, a computational model for simulating the transport of water from the intracellular to the extracellular water-CPA solution during cryopreservation of cells is presented. The main novelty of the study is that the effect of water transport on the shrinkage of the cells is captured. The developed model is used to study the effect of different parameters such as the number of cells, cell size and different CPA concentration on diffusion pattern and shrinkage for a domain containing single or multiple cells. It is found that the shrinkage percentage is higher if the cell size is smaller, if less number of cells is present in the domain, and if the water concentration in the extracellular region is lower.