FirstClub doubles valuation to $255 million in Series B funding
The company has surpassed one million orders and reached a $50 million annualised gross merchandise value run rate, distinguishing itself with a curated inventory of premium grocery items rather than the staple-heavy assortments typical of rivals.
Bengaluru-based quick-commerce startup FirstClub has raised $55 million in a Series B funding round co-led by Peak XV Partners and Sofina, doubling its valuation to $255 million. The investment comes just nine months after the company’s previous round, which valued the firm at $120 million in September 2025. Existing investors Accel, RTP Global, and Paramark Ventures also participated in the latest financing, bringing FirstClub’s total funding to $86 million.
The startup differentiates itself in the Indian quick-commerce market by prioritising product curation and quality over delivery speed. Founded in 2024 by former Flipkart executive Ayyappan R, FirstClub offers a curated assortment of approximately 4,000 products, which is roughly one-third the size of the inventory carried by many competitors. The company conducts quality checks on fresh produce, lab-tests certain staples, and develops exclusive products with brands to position itself as a trusted destination for groceries.
FirstClub reports strong early traction, having crossed one million orders and acquired 170,000 households within a year of launching in Bengaluru. The company has reached a $50 million annualised gross merchandise value run rate, with customers placing more than four orders per month on average. The average customer spend is approximately ₹1,200 ($13) per order, and over 60 per cent of the customer base comprises women-led households.
Unlike many quick-commerce platforms where staple vegetables dominate sales, FirstClub’s top-selling products include premium items such as avocados, persimmons, and Modi apples. This strategy appears to be resonating with a segment of affluent, health-conscious consumers willing to pay for higher-quality products. Peak XV Managing Director GV Ravishankar cited this trend as evidence that India’s retail landscape is beginning to fragment beyond a one-size-fits-all approach centred on price and convenience.
FirstClub currently operates 21 stores in Bengaluru and has recently launched three locations in Hyderabad. The startup employs approximately 220 people directly. Plans for the new capital include expanding operations beyond Bengaluru into Hyderabad and broadening product categories to include home and kitchen products, gifting, and other household essentials.
India’s quick-commerce market has expanded rapidly, growing from about $6.2 billion in FY25 to an estimated $11 billion to $12 billion in FY26, according to a recent ICICI Securities report. While leading players have popularised online grocery shopping through ever-faster deliveries, FirstClub’s model suggests that a growing segment of consumers will prioritise quality and product curation over receiving orders as quickly as possible.
