Bengaluru-based premium grocery startup FirstClub is in advanced discussions to raise $50-60 million (around Rs 450-550 crore) in fresh funding from Peak XV Partners, Sofina Ventures and other investors, as it looks to expand beyond Bengaluru and widen its product assortment, according to people aware of the developments.
If the round closes, FirstClub is being valued at about $250 million (around Rs 2,250 crore), more than double its earlier valuation of around $120 million roughly six months ago, reflecting continued investor interest in businesses with a quick-commerce layer.
People familiar with the talks told Moneycontrol that the proposed financing is expected to be entirely primary capital, and more investors could still join as discussions progress.
Where the money could go
Once the funds are secured, FirstClub plans to expand to top cities beyond Bengaluru and move beyond its current focus on fruits, vegetables and staples, a push aimed at improving average order values (AOV) and opening up new revenue streams.
Founder and CEO Ayyappan R (a former Flipkart SVP) has also spoken about taking the brand offline with experiential centres in Bengaluru and other cities in the coming months.
The numbers FirstClub is citing
In about nine months of full-scale operations, FirstClub has:
- delivered over 1.2 million (12 lakh) orders,
- sold over 15 million units,
- served more than 2 lakh people,
- and reported an AOV of around Rs 1,500.
Ayyappan R said the company was growing at around 45% compounded monthly growth rate over the last two quarters.
He also noted that, despite the brand’s premium positioning, demand is not limited to affluent households, with a “significant portion” of orders coming from lower-rent communities and paying guest accommodations, which he framed as a sign of broader demand for clean-label groceries.
What expansion looks like on the ground
FirstClub’s near-term plan includes scaling to 35 stores within six months, covering all Bengaluru pincodes, and adding categories such as home, kids’ food, pet care and gifting.
The company is also testing new formats, including subscription deliveries and cafés in dark stores serving food made using FirstClub’s own ingredients.
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