Qcommerce

Former Cleartrip CEO Ayyappan R In Talks With VCs For Quick Commerce Biz Rollout Amid Rising Competition

• ByStartupStory     |    September 17, 2024

As competition in India’s quick commerce sector intensifies, several top executives are stepping into the fray, aiming to seize opportunities in this fast-growing market. The latest industry leader to join the race is former Cleartrip CEO, Ayyappan R, who is reportedly in discussions with venture capital firms like Accel and RTP Global to secure backing for his new quick commerce retail venture.

According to a report by the Economic Times, Ayyappan’s venture, registered under the name FirstClub, is seeking seed funding to roll out its operations soon. The business aims to deliver a curated selection of premium products within a 20-30 minute window, while also incorporating an offline retail component. The venture is poised to target a niche, positioning itself as a “Costco for India.”

Sources quoted in the report noted that the quick commerce business will span various retail categories, including FMCG, health and fitness, and fashion. It will offer both international and local brands, with products ranging from unbranded essentials like dry fruits and freshly ground atta to premium items such as blueberries and avocados.

In addition, the platform plans to feature direct-to-consumer (D2C) products, such as organic Supima cotton t-shirts and healthy gummies. The business model will operate on a subscription basis, providing exclusive platform access to members or offering better pricing for subscribers.

“The proposed venture is expected to deliver a wide variety of products, including unbranded goods and premium items. It will focus on a mix of international and local brands, covering multiple retail categories,” sources told ET.

Ayyappan, who stepped down as CEO of Cleartrip in February, previously held key leadership positions at Flipkart, including the role of chief business officer at Myntra. His new venture comes as Flipkart continues its aggressive push into the quick commerce segment with its service ‘Minutes,’ which recently expanded in Delhi and parts of Bengaluru.

Walmart-owned Flipkart has announced plans to launch 100 dark stores—small warehouses designed to speed up deliveries—during the festive season, further underscoring the rising importance of quick commerce in the Indian retail landscape.

As reported, Flipkart’s B2C arm saw a 42% year-on-year (YoY) jump in operating revenue, reaching INR 14,845.8 Cr for FY23. The company also recorded a 9% decline in its losses, with a figure of INR 4,026.5 Cr in the same financial year, down from INR 4,419.5 Cr in FY22.

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