FirstClub raises $55 mn, valued at $255 mn

Quick commerce startup FirstClub has raised $55 million (about Rs 512 crore) in a funding round led by Peak XV and Sofina, with participation from existing investors Accel, RTP Global and Paramark. The round values the Bengaluru-based company at $255 million (about Rs 2,300 crore).The funding comes less than a year after the company raised its Series A round, underscoring investor interest despite a challenging funding environment for startups.Founded about 18 months ago, FirstClub has positioned itsel FirstClub f as a quality-first quick commerce platform rather than competing solely on delivery speed."We were very clear from day one that we did not want to build one more app delivering products in five or ten minutes. Quality had to be the single biggest cornerstone of the platform," said Ayyappan R, founder of FirstClub.The company delivers groceries and fresh produce in under 30 minutes and differentiates itself through stringent quality controls, including lab testing and publishing quality reports for consumers.Ayyappan said the startup has seen strong consumer traction, with business doubling roughly every three months. "The kind of organic consumer love, word-of-mouth-led acquisition and retention that we have seen has been a huge positive surprise," he said.The fresh capital will be used to expand its network of "clubhouses"—the company's term for dark stores—launch new product categories and enter additional cities. After starting operations in Bengaluru, FirstClub recently expanded to Hyderabad and plans to launch in more cities.The company currently operates 21 clubhouses in Bengaluru and expects to achieve full city coverage with 30-35 locations.Ayyappan said the platform's average order value stands at around Rs 1,200, significantly higher than the industry average. "People are not just buying one or two categories. They are exploring the entire range, which is reflected in larger basket sizes and stronger unit economics," he said.The company is also betting on a curated assortment and quality-focused sourcing strategy to drive customer retention and improve unit economics as it scales.