Premium retail grocery startup FirstClub is in advanced discussions to raise $50–60 million (Rs 450–550 crore) in a new funding round led by Peak XV Partners, Sofina Ventures and other investors, according to people familiar with the development.
The entire funding is expected to come in the form of primary capital, with the possibility of additional investors joining the round as discussions continue.
Valuation more than doubles in six months
During the ongoing negotiations, the Bengaluru-based company is being valued at around $250 million (approximately Rs 2,250 crore). If the deal is completed at this valuation, FirstClub’s worth will have more than doubled from about $120 million just six months ago.
The sharp valuation jump reflects growing investor interest in startups that combine premium retail with quick commerce capabilities, which continue to attract venture capital funding.
However, sources noted that negotiations are still ongoing and the final structure of the deal may change as talks progress.
FirstClub, Peak XV Partners and Sofina Ventures did not immediately respond to queries regarding the funding round.
Expansion plans and growth strategy
Once the funding is secured, FirstClub plans to expand its presence beyond Bengaluru into other major cities. The company also intends to broaden its product offerings beyond fruits, vegetables (F&V) and grocery staples to increase average order value (AOV) and generate new revenue streams.
The company was founded by Ayyappan R, a former Senior Vice President at Flipkart.
Since launching full-scale operations about 9 months ago, FirstClub has delivered more than 1.2 million orders, sold over 15 million units and served more than 2 lakh customers. The platform currently records an average order value of around Rs 1,500.
“The company is growing at around 45 percent compounded monthly growth rate over the last two quarters,” Ayyappan R said during a media briefing on February 11.
Demand expanding across customer segments
Despite its premium positioning, the company has seen demand from a wide range of customers. Ayyappan noted that a notable portion of orders is coming from lower-rent communities and paying guest accommodations, indicating strong demand for clean-label grocery products across multiple consumer segments.
New formats and offline expansion
FirstClub is also planning to introduce offline experiential centres in Bengaluru and other cities in the coming months.
The company aims to expand to 35 stores within six months, covering all Bengaluru pincodes. It also plans to add new product categories such as home products, kids’ food, pet care and gifting.
In addition, FirstClub is experimenting with new formats including subscription-based deliveries and cafés inside dark stores, where food will be prepared using ingredients sourced from the company’s own product range.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
