FirstClub in talks to raise $20 million from Accel, Paramark Ventures, others, as investors double down on quick commerce

FirstClub CEO and founder Ayyappan R

FirstClub, the members-only rapid delivery startup founded by former Flipkart senior vice president (SVP) Ayyappan R, is in advanced stages to raise $20 million (around Rs 170 crore) from existing investors including Accel and RTP Global, with new backer Paramark Ventures also expected to join, sources told Moneycontrol.

The Bengaluru-based company is putting together a fresh round just eight months after it raised $8 million in seed investment, as it chalks out growth plans with more investors looking for exposure to quick commerce.

A slew of its early backers including Blume Founders Fund, Quiet Capital, and 2am VC and others are also likely to participate in the round on a pro rata basis, sources said.

FirstClub is commanding a valuation of around $120-130 million, up sharply from around $50 million in December 2024, as its expands to newer pockets in Bengaluru.

FirstClub, Accel, and RTP Global did not respond to queries sent by Moneycontrol.

Conviction around quick commerce

Accel is doubling down on FirstClub as it continues to focus on quick commerce and premium retail as key areas. The investor also backs food and grocery delivery major Swiggy and Swish, a rapid food-delivery platform, in the same industry.

For South Korea-based Paramark Ventures, this will be the first bet in the sector. It has previously backed startups such as Kuku FM, Cashify, Purplle and ProcMart in India.

Founded in 2024, FirstClub targets India’s top 10 percent of consumers, those with household incomes of more than Rs 15 lakh residing in metro cities. The startup sells packaged foods, fresh produce, bakery items, dairy, nutrition products and more, catering to premium buyers who are willing to prioritise and pay an additional amount for quality over mass-market deals.

The company launched its member-only clean-label grocery app on June 11, initially covering Sarjapur Road and Bellandur in Bengaluru. FirstClub has, so far, concentrated on building a local footprint, with plans to open 10 mini-warehouses for quick deliveries and two offline centres within its first year.

The fresh capital will support expansion into Delhi and Mumbai.

FirstClub’s push comes amid heightened activity in India’s quick commerce space, with Blinkit, Instamart, Zepto, Tata BigBasket, Amazon Now, and Flipkart Minutes aggressively scaling their operations.

Verticals including fashion, food delivery, home services, and even baby care have also seen a spate of rapid delivery startups.

The Indian rapid delivery market, estimated at $6 billion, is expected to grow into a $40-billion opportunity by 2030, according to analysts, making it an attractive segment for investors looking to ride the next wave of urban convenience.