Mumbai FC was founded on 27 June 2007 with a grand launching event in Mumbai with the objective of providing a platform for the young aspiring footballers in the city to showcase their talent and to make it to the big stage. Mumbai have a local rivalry with another Mumbai-based club Air India FC and state rivalry with Pune F.C. which they call the 'Maha' derby as both the clubs play in the state of Maharashtra.
Mumbai FC was officially founded at a grand launch in Mumbai on 27 June 2007. The club was created to provide Indian football another non-institutional club and to provide young aspiring footballers in the city a chance to show off their skills on a proper platform. Mumbai FC then set about their goals in which they wanted to build a strong first team, build a good youth development program which would serve as the platform in the ladder to the first-team for potential youngsters, build a good football culture in Mumbai, and develop the football infrastructure in Mumbai. The club started building their team straight away with the signing of EnglishmenDavid Booth. The team then started making some major signings in Indian internationals Abhishek Yadav, Khalid Jamil, Noel Wilson, and Kalyan Chaubey along with potential youngsters Dane Pereira and Darren Caldeira. The team then added their first round of foreign players Felix Aboagye and James Dissiramah. The club then began their grassroots project in November 2007 with Aqueel Ansari being the head coach. Mumbai FC then participated in their first tournament, the Mumbai Football League Elite Division in 2007. Mumbai FC lost their match in the Mumbai Football League to RCF 2-1 with Dane Pereira scoring the first goal. Mumbai FC then won the first match in their history against Bengal Mumbai FC; in their second match, won 7-0 with Abhishek Yadav scoring four goals. The club then won their first-ever championship, the Abhijit Kadam Memorial Cup, in which Mumbai defeated then I-League club Vasco. The club then finished in second place in the Mumbai Football League Elite Division behind I-League club Mahindra United.
The club played in their first national competition in 2008 when they participated in the 2008 I-League 2nd Division. The club were placed in Group B with Mohammedan, Indian Bank, Amity United, Oil India, and New Delhi Heroes. The club won their first four matches in their group, only losing the final match of the group stage against Mohammedan which did not matter as the club was already qualified for the Final Round. The club won their first match of the Final Round which was a revenge match against Mohammedan. The club then played local rivals Pune F.C. for the first time in their history and thus started the Maha Derby (however the match was on neutral territory) with Mumbai winning the match. The club then drew against Vasco S.C. which was followed by a two goal victory over Indian Bank. The club then officially secured promotion to the I-League when the defeated Chirag United despite being a man-down.
The club played their first season in the I-League during the 2008–09 I-League season. The club played their first ever I-League match against historic club Mohun Bagan on 27 September 2008 in which Abel Hammond scored the first ever I-League goal for Mumbai FC as Mumbai went on to win 2-1 at the Barasat Stadium. Mumbai then completed a double against the two giant Kolkata clubs after they defeated East Bengal F.C. at the Salt Lake Stadium 1-0 with Felix Aboagye scoring the only goal. Mumbai then played their first ever home match in their history at the Cooperage Ground on 11 October 2008 with Kalia Kulothungan scoring the only goal in the match. Half-way through the season Mumbai was placed in sixth place in the table. The club however could not last in the I-League and finished in 7th place which currently remains their best position to date.
The colors of Mumbai FC are yellow and blue, which are derived from the club crest. The home kit consists of a yellow jersey with blue shorts and blue socks while the away kit consists of a white and orange jersey and black shorts and black socks.