Ayyappan has kicked off discussions with VC firms like Accel and RTP Global for backing his quick-commerce retail venture in its seed funding round, which will likely take off soon
As per an ET report, the business will likely focus on delivering a curated selection of premium products within 20-30 minutes and will also feature an offline retail presence
Ayyappan announced his departure from the Flipkart-owned company in February
With the quick commerce battle heating up in India, a host of CXOs are making a beeline to venture into this new space, which continues to see new entrants as more and more firms scramble to snag a piece of the pie.
As per ET’s report, the latest executive looking to join the list of this burgeoning sector is Flipkart-owned Cleartrip’s former chief executive Ayyappan R. He has kicked off discussions with VC firms like Accel and RTP Global for backing his quick-commerce retail venture in its seed funding round, which will likely take off soon.
As per the report, the business will likely focus on delivering a curated selection of premium products within 20-30 minutes and will also feature an offline retail presence, hence the need for larger-than-average seed funding.
Positioned as a ‘Costco for India,’ the venture is currently registered as FirstClub, although Ayyappan is yet to finalise the brand name, the report added, citing sources.
The venture will span multiple retail categories, including FMCG, health and fitness, and fashion, offering a mix of international and local brands, sources told ET.
The report further added that the proposed venture plans to offer a variety of products, including unbranded goods like dry fruits and freshly ground atta, along with premium items such as blueberries and avocados. D2C products like organic Supima cotton t-shirts and healthy gummies are also expected to be included.
It will operate on a subscription model, providing platform access exclusively to members or offering better pricing.
Ayyappan announced his departure from the Flipkart-owned company in February. Prior to that, he held several leadership roles at Flipkart, including chief business officer at Myntra.
This comes at a time when Walmart-owned Flipkart
is on an expansion spree. Recently, it expanded its quick commerce service ‘Minutes’ for Delhi users.
Earlier last month, Flipkart ‘Minutes’ went live in parts of Bengaluru amid the increasing popularity of the segment.
Meanwhile, the company is said to be planning the launch of 100 dark stores—small warehouses aimed at speeding up deliveries—during the festive season to enhance its quick commerce operations
The operating revenue of Flipkart’s B2C arm rose 42% year-on-year (YoY) to INR 14,845.8 Cr in the financial year 2022-23 (FY23). Its loss declined 9% to INR 4,026.5 Cr during the year from INR 4,419.5 Cr in FY22.
