FirstClub nets Series B funding as valuation doubles to $255 mn

FirstClub, a quick-commerce platform founded in 2024 by Ayyappan R, a former Flipkart executive, has raised $55 million in Series B funding. The round was led by domestic venture capital firm Peak XV Partners and Belgium-based Sofina, with existing investors Accel, RTP Global, and Paramark Ventures also participating. This brings FirstClub’s valuation to $255 million, more than double its $120 million valuation after the Series A round in September 2023. The startup operates as a member-first platform delivering high-quality, curated products in under 30 minutes, focusing on trust and transparency rather than speed. It conducts rigorous quality checks, including lab testing for items like milk, atta, paneer, and dals, and has banned over 200 harmful ingredients from its platform. FirstClub claims to have processed over 1 million orders in less than a year since launching operations in Bengaluru and recently expanding to Hyderabad. The funding will support expansion into new cities and introduce new product categories, including beauty, personal care, home essentials, and pet care. FirstClub also plans to strengthen its technology and supply chain capabilities. Founder Ayyappan R emphasized the company’s commitment to quality, stating that customer trust is prioritized over rapid delivery times. Managing Director of Peak XV Partners, GV Ravishankar, highlighted FirstClub’s high customer retention and growth as evidence of its consumer appeal. FirstClub differentiates itself by ensuring product safety and quality, particularly in food items, to address consumer concerns about what’s inside packaged goods. The startup’s rapid growth and focus on transparency align with the increasing demand for direct-to-consumer (D2C) brands seeking reliable platforms. The Series B funding marks a significant milestone for FirstClub, reinforcing its position in India’s evolving quick-commerce landscape.