FirstClub, quick commerce start-up for affluent Indians, raises $8M
What's the story
FirstClub, a quick commerce start-up founded by former Flipkart Senior Vice President Ayyappan R, has raised an impressive $8 million in seed funding. The round was led by Accel and RTP Global, with participation from Blume Founders Fund, Quiet Capital, and 2am VC. High-profile investors including Flipkart co-founder Binny Bansal and Myntra co-founder Mukesh Bansal also participated in the funding round.
Business model
FirstClub's unique market strategy and expansion plans
FirstClub is uniquely poised to cater to the top 10% of India's population, specifically households with an annual income of more than ₹15 lakh. The start-up intends to provide premium products like fresh produce, dairy, bakery items, and nutrition supplements. Ayyappan R said their target customers are those "who don't mind paying a 20-30% premium for products if they get fresh produce which are of the highest quality."
Growth strategy
Initial focus and future expansion
FirstClub will focus on Bengaluru for the first year before expanding to Delhi and Mumbai. The company plans to set up 10 dark stores and two offline stores, which will also double as experience centers. The start-up plans to operate as an omnichannel business and hopes to deliver products within 30 minutes.
Market positioning
FirstClub's differentiation in a rapidly growing market
The Indian quick commerce sector is booming and is expected to grow from a $6 billion market to a $40 billion opportunity by 2030. Even with a crowded market (Zomato's Blinkit, Zepto, Swiggy Instamart, etc.), Ayyappan R believes FirstClub will stand out by emphasizing product quality over speed or price.
Investor insights
Investors express confidence in FirstClub's approach
Barath Shankar Subramanian from Accel noted that FirstClub is "addressing the growing demand for premium products and services" by emphasizing "unparalleled quality, convenience and trust." Nishit Garg from RTP Global said they are excited to partner with Ayyappan R as he pioneers a new approach to retail. FirstClub will go live by mid-2025, redefining modern retail by catering to evolving consumer needs with high-quality offerings.