FirstClub's Premium Approach in India's Quick Commerce Market

While quick commerce in India is dominated by 10-minute deliveries, FirstClub is charting a different path with a slower, curated approach. Despite this, the startup has seen rapid growth, tripling its valuation to $120 million just three months after launching its app.

Funding and Growth

FirstClub has raised $23 million in a Series A round co-led by Accel and RTP Global, with participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures. This funding comes only eight months after an $8 million seed round at a $40 million valuation in December.

Market Context

India's e-commerce market, valued at approximately $60 billion in GMV, is expected to grow to $170-$190 billion by 2030. The shift from traditional e-commerce to ultra-fast fulfillment is driven by quick-commerce startups, prompting giants like Amazon and Flipkart to enter the space.

FirstClub's Strategy

FirstClub targets the top 10% of Indian households (about 20 million) with premium products and a curated experience. It operates in Bengaluru with four dark stores (called "clubhouses") and offers over 4,000 curated SKUs across categories like packaged foods, fresh produce, bakery, dairy, and nutrition.

Founder and CEO Ayyappan R, with over a decade of experience at Flipkart and ITC, emphasizes quality over speed. The startup has an average order value of ₹1,050 (about $12)—double that of leading competitors—and a 60% repeat purchase rate.

Product Curation and Exclusivity

FirstClub focuses on exclusive products, with 60% of its offerings being unique to the platform. It uses a third-party consumer panel for blind testing to ensure only the best products are featured. For example, paneer (cottage cheese) is tested from various brands, and only the top three make it to the platform.

Expansion Plans

With the new funding, FirstClub plans to expand into new categories such as children's food, pet food, nutraceuticals, and cafes with freshly made items. It will also enter home and general merchandise categories within six months, including home decor, essentials, and utensils.

The customer base is 70% women, so the startup tailors products and expansions to their needs. Customers are primarily from households with an annual income of ₹1.5 million (around $17,000), and the app enforces a minimum cart value of ₹199 to target the right audience.

Technology and User Experience

The app is designed for a browser-led experience rather than search-led, encouraging exploration and improving retention. FirstClub has banned over 200 harmful ingredients from its supply chain to ensure product safety.

Image Credits: FirstClub

Future Vision

FirstClub aims to emulate the experiences of retailers like Costco, Whole Foods, Trader Joe's, and TJ Maxx in North America. Plans include expanding to 35 clubhouses in Bengaluru this year, entering new cities, and exploring multiple channels such as slotted deliveries, subscriptions, and offline presence.

The startup currently employs 185 people, including 75 in operations, and is focused on maintaining high quality and hygiene standards in its operations.