Quick commerce FirstClub doubles valuation to $255M in nine months

In a quick-commerce market obsessed with speed, Indian startup FirstClub has convinced investors that quality may be a fresh opportunity, helping to double its valuation just nine months after its last funding round.

The Bengaluru-based startup has raised $55 million in a Series B round co-led by Peak XV Partners and Sofina, valuing the company at $255 million after the investment. That’s up from $120 million when it last raised capital in September 2025. Existing investors Accel, RTP Global, and Paramark Ventures also participated. The latest financing brings FirstClub’s total funding to $86 million.

As grocery shopping increasingly moves online, India’s quick-commerce market has expanded rapidly, growing from about $6.2 billion in FY25 to an estimated $11 billion-$12 billion in FY26, according to a recent ICICI Securities report. Leading players have popularized online grocery shopping through ever-faster deliveries. However, FirstClub is wagering that a growing segment of consumers will prioritize quality and product curation over receiving orders as quickly as possible.

Founded in 2024 by former Flipkart executive Ayyappan R, FirstClub operates a curated online grocery platform that offers around 4,000 products — roughly a third of the assortment carried by many quick-commerce rivals. The startup says it conducts quality checks on fresh produce, lab-tests certain staples, and works with brands to develop exclusive products, as it seeks to position itself as a trusted destination for groceries rather than a fast-delivery service.

“People don’t need a very large selection, but they need the right quality selection, consistently delivered every single time,” Ayyappan said in an interview.

FirstClub says more than 60% of its customer base consists of women-led households. Unlike many quick-commerce platforms, where staples such as onions, tomatoes, and potatoes dominate sales, Ayyappan said some of FirstClub’s top-selling products include avocados, persimmons, and Modi apples, reflecting demand for premium and curated grocery offerings.

The strategy appears to be resonating with early shoppers. FirstClub says it has crossed 1 million orders and acquired 170,000 households within a year of launching in Bengaluru.

The startup is currently operating at an annualized gross market value (meaning total of all goods sold on its platform) of about $50 million, with customers placing more than four orders a month on average and spending roughly ₹1,200 (about $13) per order, Ayyappan told TechCrunch.

FirstClub plans to use the fresh capital to expand beyond Bengaluru, where it currently operates 21 stores, and deepen its presence in Hyderabad, where it recently launched with three locations. The startup, which employs about 220 people directly, also plans to expand into categories including home and kitchen products, gifting, and other household essentials.

Peak XV Managing Director GV Ravishankar said the firm believes India is seeing the emergence of a larger cohort of affluent, health-conscious consumers willing to pay for higher-quality products, creating space for specialized grocery platforms alongside mainstream quick-commerce players.

“There will be a specific set of consumers who gravitate toward a better-quality platform that serves trustworthy products,” Ravishankar told TechCrunch. “As Indians become wealthier and more informed, there will be more and more people who make that choice.”

Ravishankar compared the trend to the rise of premium grocery chains in developed markets, arguing that India’s retail landscape is beginning to fragment beyond a one-size-fits-all approach centered on price and convenience.