Bengaluru-based FirstClub has raised $23 million (INR 203 crore) in Series A funding at a post-money valuation of $120 million (INR 1,050 crore), tripling its worth from December 2024. The round was co-led by Accel and RTP Global, with participation from Blume, 2am VC, Paramark Ventures, Aditya Birla Ventures, and a minor debt component.
The capital will help FirstClub open 35 new dark stores in Bengaluru over six months, launch cafes and daily subscriptions, and ramp up category expansion—including kids’ food, pet food, nutraceuticals, home care, gifting, and furnishings in partnership with local and global brands.
Founded by Ayyappan R (ex-Cleartrip CEO), FirstClub focuses on premium, quality-first quick commerce, not just delivery speed. Since launching in June 2025, it offers over 4,000 SKUs—packaged foods, produce, bakery, dairy, private labels—with claim of 2X average order value versus others, 60% exclusive products, and high repeat rates. About 95% of goods are locally sourced, with the remainder imported. Four dark stores are already operational; the next phase aims to service every pincode in Bengaluru before Diwali, then expand to Delhi and Mumbai.
Quick Commerce Boom
FirstClub’s 2X average order value and repeat rates are fueling investor interest across the quick commerce space, especially as the broader market is projected to hit $40 billion in India by 2030. Alongside grocery and essentials, new verticals like fashion are witnessing big funding spurts:
- KNOT raised $3 million (pre-Series A) led by Kae Capital; fast fashion delivered in 60 minutes with Try ‘n Buy options, AI virtual try-ons, and influencer-led discovery. They aim to expand beyond Mumbai and deepen brand partnerships.
- ZILO, founded by ex-Flipkart and Myntra executives, secured $4.5 million-led by Info Edge Ventures and Chiratae Ventures—to strengthen a hybrid supply chain for 60-minute delivery of fashion across 250+ brands. Like KNOT, ZILO wants to combine offline scheduled home trials and instant returns to mirror offline shopping experiences.
Challenges and Competitive Dynamics
Established players like Blinkit, Zepto, Swiggy Instamart, Flipkart Minutes, and Tata BigBasket are doubling down on dark store expansion, especially in metro areas with high disposable incomes. Blinkit plans to reach 2,000 stores by end-2025, while others chase similar aggressive targets. This is causing dark store rents in cities like Bengaluru and Mumbai to spike up to 40%, intensifying competition for prime urban space and speeding up delivery innovations.
Check out: BigBasket currently runs around 700 dark stores across Tier I and II cities. The company plans to add 200 more by year-end, targeting a total of 900 dark stores to enhance delivery speed and reach.
Non-metro regions contribute less to quick commerce gross merchandise value (GMV), underlining the sector’s focus on high-volume urban clusters. With premium, exclusive SKUs and bulk orders shaping strategies, platforms are adapting to evolving hyperlocal demand.
Market Outlook: Speed, Quality, and Experience
Quick commerce in India is no longer just about groceries—it’s about instant, curated essentials, fashion, gifts, and more, accessible in minutes. Startups like FirstClub, KNOT, and ZILO are leading the charge by marrying speed with quality, premium curation, and market-first shopping experiences. For consumers, impulse buys and daily top-ups are becoming a seamless routine; for investors, the sector promises rapid top-line expansion and new monetization channels.
Read this: Swiggy Adds 2,000 Employees in FY25 to Fuel Its Quick Commerce Expansion in 100+ New Cities
Final Thoughts
As quick commerce matures into a multi-category race, FirstClub’s premium approach, rapid fundraises, and category expansion reflect a new standard in retail innovation. With evolving consumer behaviors and relentless competition, the next wave of unicorns in India’s “instant economy” may well be those who deliver quality as quickly as quantity, leaving incumbents and challengers alike to vie for every minute and SKU.
