Calcium rich gap transients represent an intriguing new class of faint and fast evolving supernovae that exhibit strong [Ca II] emission in their nebular phase spectra. In this paper, we present the discovery and follow-up observations of iPTF 16hgs -an intermediate luminosity and fast evolving transient that exhibited a double peaked light curve. Exhibiting a typical Type Ib spectrum in the photospheric phase and an early transition to a [Ca II] dominated nebular phase, we show that iPTF 16hgs shows properties consistent with the class of Ca-rich gap transients, with two interesting exceptions. First, while the second peak of the light curve is similar to other Ca-rich gap transients (suggesting M ej ≈ 0.4 M and peak luminosity ≈ 3 × 10 41 ergs s −1 ), we show that the first blue and fast declining (over ≈ 2 days) peak is unique to this source. Second, with Integral Field Unit observations of the host galaxy, we find that iPTF 16hgs occurred in the outskirts (projected offset of ≈ 6 kpc ≈ 1.9 R eff ) of a low metallicity (≈ 0.4 Z ), star forming, dwarf spiral galaxy. Using deep late-time VLA and uGMRT observations, we place stringent limits on the local environment of the source, ruling out a large parameter space of circumstellar densities and mass loss environments of the progenitor. If iPTF 16hgs shares explosion physics with the class of Ca-rich gap transients, we suggest that the presence of the first peak can be explained by enhanced mixing of 0.01 M of 56 Ni into the outer layers the ejecta, reminiscent of some models of He-shell detonations on WDs. On the other hand, if iPTF 16hgs is physically unrelated to the class, the first peak is consistent with shock cooling emission (of an envelope with a mass of ≈ 0.08 M and radius of ≈ 13 R ) associated with a core-collapse explosion of a highly stripped massive star in a close binary system.