Firstclub Valuation Triples to $120M - Premium Approach

FirstClub's Distinct Approach to India's Quick Commerce Landscape

While the rapid growth of quick commerce in India is largely defined by 10-minute delivery promises – attracting significant investment and entrepreneurial focus – FirstClub is charting a different course, prioritizing curation over sheer speed.

Recent Funding and Valuation Growth

Remarkably, only three months following the launch of its application, the 8-month-old startup has experienced a tripling of its valuation.

Securing $23 million in a Series A funding round – comprised of over 90% equity and the remainder in debt – FirstClub’s post-money valuation now stands at $120 million.

This investment was co-led by Accel and RTP Global, with participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures. This latest funding follows an $8 million seed round raised in December, which valued the company at $40 million.

The Expanding Indian E-commerce Market

India, possessing the world’s second-largest shopper base, has witnessed a surge in e-commerce, reaching approximately $60 billion in gross merchandise value (GMV).

A recent Bain & Company report projects an annual growth rate of 18%, anticipating a market size of $170-$190 billion by 2030.

It is estimated that by the end of the decade, nearly one in ten retail dollars spent in India will be transacted online.

The market has recently transitioned from traditional e-commerce, characterized by two to three-day delivery times, to ultra-fast fulfillment, largely driven by the emergence of quick-commerce startups.

Even established players like Amazon and Flipkart (owned by Walmart) have responded by introducing their own rapid delivery services.

FirstClub's Focus on Quality and Premium Customers

However, FirstClub identifies an unmet need in the market. Instead of competing on delivery speed, the company is concentrating on providing a superior quality experience.

The startup is specifically targeting the top 10% of Indian households – approximately 20 million – offering premium products and a carefully selected assortment.

Operational Details and Current Reach

Since its launch in June, FirstClub currently serves customers in select areas of Bengaluru through four “clubhouses,” which function as fulfillment centers resembling retail stores but dedicated solely to online orders.

The company maintains a stock of over 4,000 curated stock-keeping units (SKUs) spanning packaged foods, fresh produce, bakery items, dairy products, and nutritional supplements.

Consumer Preferences and Business Model

“Data from the past three months clearly indicates that consumers are willing to accept slightly longer delivery times in exchange for a highly differentiated selection, superior product quality, exceptional service, and a personalized experience,” stated Ayyappan R, founder and CEO of FirstClub, in a recent interview.

The startup currently reports an average order value of ₹1,050 (roughly $12) – approximately double that of leading quick-commerce platforms for grocery deliveries – alongside a 60% repeat purchase rate.

Founder's Experience and Platform Development

Ayyappan brings substantial experience to the venture. Prior to establishing FirstClub in December, he spent over a decade at Flipkart, India’s leading homegrown e-commerce company.

During his tenure at Flipkart, he held leadership positions within its subsidiaries, Myntra (a fashion e-commerce platform) and Cleartrip (a travel booking service).

He also previously contributed to strategy development for grocery market expansion and outlet coverage at Indian consumer goods conglomerate ITC.

These experiences were instrumental in rapidly transforming FirstClub from an initial concept into a functioning business.

“Within six months, we successfully developed a complete end-to-end technology platform,” he noted.

Exclusive Products and Supply Chain

The startup has also cultivated its own supply chain network and forged partnerships with select brands to offer exclusive products. Currently, 60% of the items available on the platform are exclusive to FirstClub.

“Our focus isn’t on delivery speed; rather, we aim to provide products that are not readily available elsewhere, whether in physical stores or online,” Ayyappan explained.

Rigorous Product Testing

FirstClub employs a third-party consumer panel to rigorously evaluate products before they are listed on the platform.

“For instance, with paneer (Indian cottage cheese), 20 different brands undergo blind testing by this panel, and the top three performing products are selected for inclusion on our platform,” the founder clarified.

Strategic Category Focus

The startup initially focused on groceries as its primary category. While acknowledging the intense competition within this space – with companies like Blinkit and Swiggy’s Instamart also offering grocery delivery – Ayyappan believes there is an opportunity to provide a differentiated selection of high-quality items.

Growth Strategy Supported by New Investment

FirstClub is planning an expansion of its product offerings beyond groceries, incorporating categories such as children’s nutrition, pet supplies, and nutraceuticals. Within the coming month, the company will begin operating cafes, as Ayyappan communicated to TechCrunch, distinguished by a focus on freshly prepared food rather than pre-made options.

Over the next six months, the startup intends to introduce home and general merchandise. This expansion will encompass items like home décor, essential household goods, cleaning supplies, furniture, and kitchenware, according to the founder.

Targeting a Primarily Female Customer Base

FirstClub’s customer demographic is predominantly female, accounting for 70% of its users. Consequently, the company focuses on curating products specifically for this audience and is broadening its selection to align with their particular requirements.

Ayyappan further shared with TechCrunch that FirstClub’s customers generally have an annual household income of approximately ₹1.5 million (around $17,000). To attract the desired clientele, the platform prevents purchases below a cart value of ₹199 (roughly $2.40).

The application is structured to prioritize browsing over searching, a departure from the typical model of most quick commerce platforms. This design encourages extended user engagement, boosts customer retention, and allows the startup to provide a personalized experience based on gathered customer data. The company has also proactively removed products containing over 200 potentially harmful ingredients from its supply chain, the founder explained.

Ayyappan emphasized a shift in approach, stating, “Instead of offering a vast selection and letting consumers decide, the platform assumes responsibility—ensuring that every product sold meets the highest quality standards.”

The founder articulated that FirstClub aims to replicate the retail experience offered by established brands in North America, such as Costco, Whole Foods, Trader Joe’s, and TJ Maxx.

Multi-Channel Presence and Expansion Plans

“Our goal is to connect with consumers through various channels and platforms,” he stated. “This includes scheduled deliveries, subscription services, and brick-and-mortar locations, all of which will be considered.”

The newly acquired funding will also facilitate the expansion of FirstClub’s clubhouses to approximately 35 locations, covering the majority of Bengaluru this year, before extending operations to a new city.

“We are considering inviting customers to our clubhouses to demonstrate our commitment to hygiene and quality control,” Ayyappan added.

Currently, the startup employs 185 individuals, with a 75-person team dedicated to operational tasks.