Bengaluru-based FirstClub has raised $23 million in Series A funding at a valuation of about $120 million (Rs 1,050 crore), less than three months after its launch. The round was led by Accel and RTP Global, with participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures.
Founded by Ayyappan R, a Flipkart and Myntra executive who later served as CEO of Cleartrip, FirstClub is pitching itself as India’s first ‘quality-first’ quick commerce platform—a deliberate contrast to competitors such as Blinkit, Zepto, and Swiggy Instamart.
“Quick commerce today is built for speed, not standards. At FirstClub, we’re changing that,” Ayyappan said in a statement. “Every product you see on our platform is tested, vetted, and curated. Consumers shouldn’t have to compromise between convenience and quality.”
Ayyappan frames FirstClub as part of a broader shift in Indian retail. Over the last three decades, retail has evolved from mom-and-pop shops to modern trade chains such as Big Bazaar, and then to ecommerce platforms like Flipkart and Amazon. Quick commerce, he argued, succeeded only in India, unlike in other markets, because of the country’s unique cost structures, labour availability, and urban density.
While incumbents focused on transactional levers, speed, price, and selection, Ayyappan saw a gap. “If you look at any retail investor report in the last five years, the one category that’s really growing is the mid-premium segment,” he told YourStory. “Luxury has never been big in India, but people are spending more on quality products—whether it’s food, clothes, or home.”
That is where FirstClub wants to position itself: not as a luxury niche, but as a mass mid-premium retailer. “We’re building for 20 to 30 million households, not one or two million,” Ayyappan said. “This is not about niche consumption. Families with Rs 40,000 monthly rents are already shopping with us. They want quality at a fair price.”
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Clubhouses, not dark stores
Since launching in June, FirstClub has opened four “clubhouses” in Bengaluru—its rebranded dark stores designed to be cleaner and consumer-facing. “When you’re selling food, hygiene and cleanliness should matter,” Ayyappan said. “If tomorrow I want to invite consumers into the store, I should be able to. That’s why we don’t call them dark stores.”
The startup has already onboarded over 4,000 curated products across packaged foods, bakery, dairy, fresh produce, and nutrition, while banning more than 200 additives and testing staples such as milk and oils independently. Early data, according to Ayyappan, shows twice the average order value of rivals and strong repeat rates.
The new capital will fund 35 additional clubhouses by March, with the goal of covering all of Bengaluru by Diwali before expanding to new cities. Alongside groceries, FirstClub plans to roll out several offerings, including a café where all meals are made daily with ingredients sold on its platform, gifting categories timed around the Diwali season, and home and kitchen products, including furnishings and decor.
“We want to be the retail destination for the household, not just grocery,” Ayyappan said. “This isn’t about shifting share from someone else—it’s about creating a new market for quality everyday products.”
For Ayyappan, the ambition is clear: “We’re building for a new India where households deserve better quality, better taste, and no compromises,” he said. “This is a 10-year play. Just as Costco or Whole Foods are not niche in the US, quality commerce in India will not remain niche either. It will scale.”
Edited by Kanishk Singh
