The platform which will offer local and global premium products focusing on only fresh items with high-quality ingredients is set to go live by mid-2025 starting with Bengaluru. “We will probably have two-three experience centers in the first 12 months,” Ayyappan told ET. It will later expand into other metro cities like Delhi and Mumbai.
ET first reported on September 17 about Ayyappan’s plan to roll out this venture, which is being positioned as ‘Costco for India,’ along with the deal talks. FirstClub will operate on a subscription model.
The funds will be used to build its technology infrastructure, enhance its omnichannel retail strategy, hire talent, and expand its range of product offerings.
“The next set of retail evolution and disruption in the country is going to happen on the back of the kind of selection you offer to the consumer, similar to what has happened in the western retail markets over the last 20-30 years,” Ayyapan told ET while highlighting that the demand for a high-quality set of products will be significantly high.
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The startup will initially offer a curated selection of mass-premium products across categories such as food, FMCG, bakery, dry fruits, dairy, and health and fitness supplements, delivered within 30 minutes. While being quick commerce first, it will also have an offline retail presence. It also plans to further expand into categories like general merchandise, fashion, home products, and kids’ toys. This comes at a time when several players have entered the quick commerce space, increasing competition for the existing top three: Zomato-owned Blinkit, Swiggy Instamart, and Zepto. On Monday, ET reported that Amazon India is set to launch a 15-minute delivery service in Bengaluru, joining new entrants like Flipkart, Reliance Retail, and Tata Neu.
The quick commerce effect has also prompted several brands and marketplaces to shorten their delivery timelines in order to capitalise on the growing demand for faster deliveries.
Looking at the rising competition in the quick commerce space, Ayyapan pointed out that merely being part of quick commerce, or operating online or offline, won’t ensure success. What truly matters, he said, is the quality of your offerings and having a clear understanding of the customer base you are targeting.
“This customer base we are targeting is a very different target group (TG). They are mainly in the 20 to 30 age range and are eager to try different products. They prefer more direct-to-consumer (D2C) products, are conscious about health factors, and want clean-label products. They are willing to spend an additional 5% or 10% for a better and fresher product,” he added.
Ayyappan held various leadership roles at Flipkart including chief business officer of Myntra, before leaving the firm following a senior-level rejig, as first reported by ET on February 20.
Commenting on the investment, Barath Shankar Subramanian, partner at Accel, said, “FirstClub is reimagining the retail experience for India’s consumers by addressing their growing demand for premium products and services. By focusing on unparalleled quality, convenience and trust, Ayyappan and his team are redefining what modern retail can deliver.”
“At RTP Global, we have always believed in backing exceptional entrepreneurs who bring not just vision, but also the resilience and deep market understanding that comes from hands-on operational experience. Ayyappan is a prime example of this, leveraging his extensive background as an operator to craft a business that directly addresses evolving consumer needs,” Nishit Garg, partner at RTP Global.
