Grocery start-up FirstClub in talks to raise $60M
What's the story
FirstClub, a Bengaluru-based premium retail grocery start-up, is in advanced talks to raise $50-60 million (around ₹450-550 crore) from Peak XV Partners and Sofina Ventures, according to Moneycontrol. The company is being valued at around $250 million (approximately ₹2,250 crore) during these negotiations. This would be more than double its previous valuation of about $120 million six months ago.
Expansion strategy
Plans to use new funds to expand services
Founded by former Flipkart SVP Ayyappan R, FirstClub has delivered over 1.2 million orders in nine months of full-scale operations. The company plans to use the new funds to expand its services beyond Bengaluru and diversify its product range. This would include categories beyond fruits, vegetables (F&V), and other staples to increase average order values (AOVs) and revenue streams.
Market traction
Start-up witnessing traction beyond affluent households
Despite its premium positioning, FirstClub is witnessing traction beyond affluent households. A significant portion of orders are coming from lower-rent communities and paying guest accommodations. The company has an AOV of around ₹1,500 and is growing at a compounded monthly growth rate of some 45% over the last two quarters.
New formats
Plans for expansion and diversification
FirstClub plans to open offline experiential centers in Bengaluru and other cities in the coming months. The company also intends to expand to 35 stores within six months, covering all of Bengaluru's pincodes. It is also experimenting with new formats such as subscription deliveries and cafes in dark stores serving food made from its own ingredients.