The Indian e-commerce market is pregnant with competition. Companies have fought to win customers for years by offering rock-bottom prices, lightning-fast deliveries and vast product selections. However, a new quick commerce startup FirstClub is choosing a different path. It is backed by prominent investors like Flipkart co-founder Binny Bansal and Myntra co-founder Mukesh Bansal. The ambitious venture is seeking to focus on the top 10% of India’s population. It is targeting the households which are earning more than ₹15 lakh annually.
FirstClub is led by former Flipkart executive Ayyappan R and has plans to woo a niche audience that prioritizes quality. Ayyappan believes that there is a growing segment of consumers who are willing to pay up to 30% premium for fresh as well as high-quality products. FirstClub aims to deliver fresh fruits, vegetables, health and fitness products with unmatched quality.
It is a bold move in such a market that is dominated by players who compete on price or speed. Ayyappan said that the next level of evolution in retail will be based on quality of products that people consume.
FirstClub has secured $8 million in funding from investors like Accel and RTP Global. It is gearing up to launch by mid-2025. The company also has plans to start in Bengaluru, Delhi and Mumbai. It will be setting up dark stores and offline experience centers to provide an omnichannel shopping experience.
The real question now is whether its vision would align with the needs of the Indian consumer. There is no doubt that affluent Indians are growing in number and most e-commerce success stories in India have been built on affordability and accessibility.
Barath Shankar Subramanian from Accel is optimistic and describes FirstClub as a game-changer in premium retail. But the challenge lies in execution as consumers may appreciate quality and convincing them to pay a premium will require more than just good products.
The approach of FirstClub is certainly refreshing in a market that is saturated with sameness. The path to success won’t be easy. The coming years will reveal if India’s top 10% are ready to embrace FirstClub’s vision or if this experiment will remain a niche offering.