Quick commerce startup FirstClub has raised $23 million in a funding round led by venture capital firms Accel and RTP Global, who had also co-led the previous round. Following this funding round, which was about 90% equity and the rest debt, the company’s valuation now stands at $120 million.
Existing investors Blume Ventures and 2am VC doubled down in this round, which also drew new backers Paramark Ventures and Aditya Birla Ventures.
The company plans to deploy the funds towards opening new dark stores in Bengaluru, rolling out formats like cafes and daily subscriptions, expanding into new categories, hiring talent, and investing in brand building.
The company raised $8 million in December last year.
Launched in June this year, the startup founded by former chief executive of Flipkart-owned Cleartrip Ayyappan R, has expanded to four dark stores known as clubhouses in Bengaluru and plans to scale up to 35 in the next six months.
“The traction has been pretty solid in the first month itself. We have seen strong business metrics across the funnel, starting with repeat orders, which indicate how much customers are sticking with us, currently upwards of 60%. Our average order value is also double that of other quick commerce platforms,” Ayyapan told ET.
The startup provides a curated range of mass-premium products spanning food, FMCG, fresh produce, fruits and vegetables, bakery, dairy, packaged foods, and nutrition, delivered within 30 minutes.
“Around 95% of our selection is currently Indian, while 5% is imported or international,” he said. The platform has both private labels and brand partnerships to sell only fresh items with high-quality ingredients. It plans to expand beyond Bengaluru in the next fiscal year.
ET first reported on September 17 last year about Ayyappan’s plan to roll out this venture, which has been positioned as ‘Costco for India.’This comes at a time when several players have entered the quick commerce space, increasing competition for the existing top three: Blinkit, Swiggy Instamart, and Zepto.
Ayyappan said the platform has banned more than 200 harmful additives, conducts independent testing of staples such as milk, ghee, and oils and curates brands that comply with the highest global standards. Firstclub will also foray into new categories such as kids’ food, pet food, nutraceuticals, home care, gifting, and furnishings in this fiscal yea
Commenting on the investment, Barath Shankar Subramanian, partner at Accel, said “Consumers are becoming increasingly discerning about what enters their homes, and that shift creates a massive opportunity to reimagine everyday retail. 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 consumer love.”
“In a world of overwhelming product choices and confusing ingredient labels, FirstClub is closing the trust gap for Indian consumers,” said Nishit Garg, partner at RTP Global.
