Ex-Flipkart executive's FirstClub raises $8M to blend premium retail with quick commerce
Quick commerce startup targets premium groceries and wellness products with 30-minute delivery promise; Accel, RTP Global lead round with Binny Bansal, Kunal Shah among backers.
Former Flipkart executive Ayyappan R's startup FirstClub has raised $8 million in seed funding from Accel and RTP Global to build its tech infrastructure and expand its team.
The funding round also drew prominent angel investors, including Flipkart's Binny Bansal, CRED's Kunal Shah, and Cult's Mukesh Bansal, alongside investments from Blume Founders Fund, Quiet Capital, and 2am VC.
Lalit Keshre (Groww), Ankit Nagori (Eatfit), and Shrenik Ghodawat (Sanjay Ghodawat Group) also participated in the round.
FirstClub is an omnichannel retailer that aims to offer high-quality products in fresh fruits and vegetables, dairy, bakery, nutrition supplements, and health and fitness categories. Through its platform, expected to go live by the middle of the calendar year 2025, FirstClub will offer high-quality products within quick commerce delivery timelines of under 30 minutes.
Through this latest funding, it initially plans to set up several dark stores in Bengaluru before expanding with experience centres. The startup will also build its technology infrastructure, refine an omnichannel retail strategy, add talent for critical functions, and expand the platform's product offerings.
Ayyappan, previously the chief business officer at Myntra, views the venture as a market creation opportunity amid intense competition within quick commerce operators for market share.
"The Indian consumer's mindset has changed quite a bit, especially in the last few years. They want to spend a lot more on discerning products, high-quality products, and premium products. If they know that this is the incremental benefit that I'm going to get, with quality, freshness, or with the ingredients used, they are happy to shell out that extra money to buy that product. So that is the customer base we are going behind," Ayyappan told YourStory.
FirstClub, which is poised to compete with offerings like Swiggy's Handpicked and offline chains like FoodHall and Nature's Basket, relies on setting up supply chains as close as possible to manufacturers to rein in pricing and offer premium products in an affordable format.
"FirstClub is reimagining retail for India's consumers by addressing their growing demand for premium products and services. By focusing on unparallelled quality, convenience and trust, Ayyappan and his team are redefining what modern retail can deliver," noted Barath Shankar Subramanian, Partner at Accel.
Unlike popular quick commerce platforms which are keen on tapping advertising revenue to increase the profitability of the platform, FirstClub is not looking to add ad monetisation. Instead, the platform is focusing on variations of a membership model with a subscription format to drive repeat purchases.
Edited by Kanishk Singh