Bengaluru-based FirstClub, a quality-focused quick commerce startup founded by Flipkart veteran and former Cleartrip CEO Ayyappan Rajagopal, has raised $23 million in a Series A round led by Accel and RTP Global, with participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures.
The funding round values the company at $120 million (₹1,050 crore) and comes just eight months after its $8 million seed round, which saw backing from industry leaders including Binny Bansal, Mukesh Bansal, Lalit Keshre, Ankit Nagori, and Kunal Shah, among others.
Launched in June, FirstClub currently offers packaged foods, bakery, dairy, and nutrition products; has set up four dark stores in Bengaluru; has added 4,000+ SKUs; and has scaled to a 180-member team.
With the latest capital infusion, the startup aims to expand to 35 stores across all Bengaluru pincodes within six months while diversifying into home essentials, kids’ food, pet care, and gifting. It is also testing new models such as subscription deliveries and in-store cafés at dark stores serving food prepared with FirstClub’s own ingredients.
By focusing on premium groceries instead of discounts and 10-minute delivery hype, FirstClub is achieving stronger unit economics.
“We are operating with 2x average order values versus any other platform in this category. Our repeat rates are over 60 percent… and we are also operating with the highest gross margin in the industry,” Ayyappan said.
The same discipline is evident in its dark store model—rather than building dense, high-rent networks to chase faster deliveries, FirstClub keeps a leaner footprint with each store covering several pincodes.
“Instead of having three different stores in three different pincodes, we are operating with one store that services all three, which brings down capex,” Ayyappan said. By offering 30-minute deliveries, the firm is also able to locate stores in lower-rent zones.
The company is planning to fast-track expansion in Bengaluru with slotted deliveries and a subscription offering. “We realized that we can roll out our slotted delivery and subscription models much faster than quick commerce. So that is what we are currently focused on,” he added.
FirstClub’s premium focus hasn’t limited its reach; a notable share of orders originates from budget communities and paying guest facilities, underscoring cross-segment appetite for clean-label groceries, according to Ayyappan.
“FirstClub has demonstrated rare early product-market fit within just three months of launch, building a full-stack platform with category ownership, operational discipline, and strong consumer love,” said Barath Shankar Subramanian, Partner at Accel.
Nishit Garg, Partner at RTP Global, added, “In a world of overwhelming product choices and confusing ingredient labels, FirstClub is closing the trust gap for Indian consumers.”
Ayyappan also said the company has explored acquisition opportunities in adjacent categories but plans to stay focused on organic growth in the near term.
“There are quite a few D2C brands in the categories we are looking to get into that are available from an M&A perspective, and we have had on-and-off conversations. But for the next three months, we do not want to dilute our focus. But that is something we will definitely explore at some point in time,” he said.
As India’s $6 billion quick commerce market races toward a $40 billion future, FirstClub is betting on quality to stand apart. The next six months in Bengaluru, including the festive season, will be a decisive test of its leadership potential.
