FirstClub: A Curated Approach to India's Slow-But-Quality E-Commerce

While quick commerce in India often evokes visions of 10-minute deliveries—a hot arena for startups and investors—FirstClub is charting a different, more measured course. Just three months after launching its app, this eight-month-old startup has tripled its valuation, reflecting significant investor optimism.

Funding Milestones and Valuation

Currently valued at $120 million post-money, FirstClub recently raised $23 million in a Series A round—more than 90% equity and the rest in debt—co-led by returning investors Accel and RTP Global. The round also saw participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures. This funding follows its December seed round of $8 million at a $40 million valuation, indicating rapid growth.

The Market Landscape in India

India, the world's second-largest shopper base, has seen e-commerce GMV swell to approximately $60 billion. It is projected to grow at about 18% annually, reaching between $170 billion and $190 billion by 2030. By the end of this decade, nearly 10% of retail dollars are expected to be spent online.

In recent months, the market has shifted from traditional e-commerce—characterized by 2-3 day deliveries—to ultra-fast fulfillment, driven by quick-commerce startups. Major players like Amazon and Flipkart have responded with their own rapid delivery initiatives.

FirstClub's Unique Niche

Unlike the race for speed, FirstClub emphasizes quality. Its target demographic is the top 10% of Indian households—roughly 20 million households—offering premium products coupled with a carefully curated shopping experience.

Operations and Offerings

Launched in June, FirstClub operates with four dark stores—or “clubhouses”—in Bengaluru. Dark stores resemble retail outlets but serve online orders exclusively. The startup stocks over 4,000 curated SKUs across categories including packaged foods, fresh produce, bakery, dairy, and nutrition.

Customer Insights and Product Strategy

Ayyappan R, CEO and founder, noted, “Data from the past three months indicates consumers are willing to wait for differentiated, high-quality products and a premium service.” The average order value stands at ₹1,050 (~$12), about twice that of mainstream quick-commerce platforms, with a 60% repeat purchase rate.

Founder’s Background

Ayyappan R brings over a decade of experience from Flipkart—India’s largest e-commerce firm—where he led teams at Myntra and Cleartrip. His prior stint with ITC focused on expanding grocery outlets and market reach, equipping him to swiftly turn FirstClub into an operational business within six months.

Differentiation Through Quality

FirstClub prioritizes exclusive and top-notch products. Currently, 60% of its offerings are exclusive to the platform, and the company employs blind testing panels to select products, such as paneer, ensuring only the best make it to the shelves.

Future Expansion Plans

With fresh capital, FirstClub aims to diversify into new categories like children’s food, pet food, and nutraceuticals. It plans to launch fresh cafes within 30 days—focusing on freshly made items rather than preheated food—and expand into home decor, essentials, and utensils within six months.

The company’s core demographic is 70% women, primarily from households earning around ₹1.5 million (~$17,000) annually. To target this segment, the app discourages purchases below ₹199 (~$2.40) and favors a browser-led experience to encourage exploration and retention.

Quality and Customer Experience

FirstClub bans products with over 200 ingredients that could harm consumers and emphasizes a curated selection akin to North American retailers like Costco and Whole Foods. The startup envisions multiple channels—delivery, subscription, and offline—to reach customers on various platforms.

Growth and Future Outlook

With plans to grow its clubhouse network to 35 locations within Bengaluru this year and expand into new cities, FirstClub also intends to involve consumers in its quality assurance process, showcasing hygiene and standards at its clubhouses.

Currently employing 185 staff, including 75 operational personnel, FirstClub is positioned as a premium, quality-focused alternative in India’s rapidly evolving e-commerce landscape.