Quick-commerce start-up FirstClub doubles valuation to $255M
What's the story
FirstClub, a Bengaluru-based start-up, has raised $55 million in a Series B funding round led by Peak XV Partners and Sofina. The latest investment has more than doubled the company's valuation from $120 million in September 2025 to an impressive $255 million. Existing investors Accel, RTP Global, and Paramark Ventures also participated in this round of financing. With this latest investment, FirstClub's total funding now stands at $86 million.
Market strategy
Quick-commerce market in India
As the online grocery shopping trend grows, India's quick-commerce market is projected to expand from $6.2 billion in FY25 to an estimated $11-12 billion in FY26, according to ICICI Securities. While major players have made online grocery shopping popular with super-fast deliveries, FirstClub is betting on a different strategy. The start-up believes that a segment of consumers will prefer quality and product curation over speed of delivery.
Business model
About FirstClub
Founded in 2024 by former Flipkart executive Ayyappan R, FirstClub offers a curated online grocery platform with around 4,000 products. The start-up conducts quality checks on fresh produce and lab-tests certain staples. It also collaborates with brands to create exclusive products. This strategy is aimed at establishing FirstClub as a trusted destination for groceries rather than just another fast-delivery service.
Growth trajectory
Key numbers and metrics
FirstClub has a customer base of over 60% women-led households. The start-up has received a positive response from customers, with more than one million orders and 170,000 households acquired within a year of launching in Bengaluru. It is currently operating at an annualized gross market value (total goods sold on its platform) of about $50 million, with customers averaging over four orders per month and spending around ₹1,200 ($13) per order.
Future prospects
Future plans and investor insights
FirstClub plans to use the new capital to expand beyond Bengaluru and strengthen its presence in Hyderabad, where it recently launched with three stores. The start-up also plans to diversify into home and kitchen products, gifting items, and other essentials. Peak XV Managing Director GV Ravishankar said they believe India is witnessing a larger cohort of affluent consumers willing to pay for quality products.