Rapid Trade FirstClub doubles its value to $255 million in nine months

In a speed-obsessed commerce market, Indian startup FirstClub has convinced investors that quality could be a new opportunity, helping to double its valuation just nine months after its latest funding round.

The Bengaluru-based startup has raised $55 million in a Series B round co-led by Peak XV Partners and Sofina, valuing the company at $255 million after the investment. That’s up from $120 million when it last raised capital in September 2025. Existing investors Accel, RTP Global and Paramark Ventures also participated. The latest financing brings FirstClub’s total funding to $86 million.

With grocery shopping increasingly shifting online, India’s grab-and-go market has expanded rapidly, growing from about $6.2 billion in FY25 to an estimated $11 billion to $12 billion in FY26, according to a recent report by ICICI Securities. Big players have popularized online grocery shopping with faster deliveries than ever before. However, FirstClub is betting that a growing segment of consumers will prioritize quality and product curation over receiving orders as quickly as possible.

Founded in 2024 by former Flipkart CEO Ayyappan R, FirstClub operates a curated online grocery platform offering about 4,000 products — roughly a third of the assortment carried by many quick-commerce competitors. The startup says it conducts quality checks on fresh produce, tests some essential materials in the lab, and works with brands to develop exclusive products, as it seeks to position itself as a trusted destination for groceries rather than a quick delivery service.

“People don’t need too many choices, but they need to make the right choice of quality, and deliver it consistently every time,” Ayyappan said in an interview.

FirstClub says more than 60% of its customer base consists of female-led households. Unlike many quick-trade platforms, where staples like onions, tomatoes and potatoes dominate sales, Ayyappan said some of FirstClub’s best-selling products include avocados, persimmons and Modi apples, reflecting demand for premium, curated grocery offerings.

This strategy seems to resonate with early shoppers. FirstClub says it crossed 1 million orders and captured 170,000 households within a year of its launch in Bengaluru.

The startup currently operates with an annual gross market value (i.e., the total of all goods sold on its platform) of about $50 million, with customers placing more than four orders per month on average and spending roughly INR 1,200 (about $13) per order, Ayyappan told TechCrunch.

FirstClub plans to use the fresh capital to expand beyond Bengaluru, where it currently operates 21 stores, and deepen its presence in Hyderabad, where it recently launched with three locations. The startup, which directly employs about 220 people, plans to expand into categories including home and kitchen products, gifts, and other household essentials.

GV Ravishankar, Managing Director, Peak

“There will be a specific group of consumers who will gravitate towards a better quality platform that serves trustworthy products,” Ravishankar told TechCrunch. “As Indians become wealthier and more informed, there will be more and more people making this choice.”

Ravishankar compared this trend to the rise of premium grocery chains in developed markets, arguing that India’s retail landscape is beginning to fragment beyond a one-size-fits-all approach focused on price and convenience.