Indian specialty coffee brand First Coffee has raised $1.3 million in a pre-Series A funding round led by Japanese venture capital firm DG Daiwa Ventures (DGDV), with participation from BEENEXT, Sanjay Kapoor, Co-Founder and MD, Genesis Luxury, Shashank Bhagat, Chairman, BI Group, and other angel investors.

The company made the announcement on August 19, stating that the funding will be used to accelerate store expansion, strengthen its corporate team, undertake marketing initiatives and invest in product line development. With this round, First Coffee has raised $2.5 million to date.

Founded by Sohrab Sitaram and Shiv Dhawan in 2024, First Coffee operates a grab-and-go specialty coffee format focused on combining premium coffee with convenience. The company uses data-driven sourcing and menu engineering as part of its retail model and has expanded to 25 stores across Delhi, Punjab and Haryana since its previous funding round.

The latest investment marks DGDV’s entry into India’s specialty coffee market. The brand plans to expand beyond its current urban markets and enter Tier 2 cities as it looks to build a wider national presence.

Makoto Ibi, Head of Global Investment at DGDV, said, “We are glad to partner with First Coffee and fuel their ambition to change coffee culture in India. India remains a key market for us, and through First Coffee we are excited to tap into the specialty coffee space in the country.”

Anirudh Garg, Partner at BEENEXT, said, “Over the last one year, First Coffee has built a very strong brand in North India, especially among younger consumers, serving their high quality specialty coffee across more than 25 outlets. The founder's previous F&B experience in founding and scaling Keventers has been instrumental in achieving that. We are happy to be a part of this funding round and continue supporting Sohrab and Shiv in their aim to elevate urban India's coffee-drinking experience.”

First Coffee has positioned itself around premium beverages, with a focus on cold coffee-based drinks and matcha. The company says it has recorded strong repeat rates among younger consumers while maintaining a focus on sustainably sourced, premium-quality coffee.

Shiv Dhawan, Co-founder of First Coffee, said, “We are happy to see our theory play out in practice. Over the last couple of years we have learnt a lot, and the experiential data is further shaping our thesis. We believe that our hybrid go-to-market strategy that includes an increased focus on the small format model is a differentiated offering that elevates the customer experience. In the next decade, the size of the out-of-home coffee market in India will grow exponentially, and we want to position ourselves to be right in the middle of this revolution.”

Sohrab Sitaram, Co-founder of First Coffee and Keventers, said, “We started First Coffee with a simple belief: great specialty coffee should be more accessible and become part of everyday India. Over the last two years, our customers and 25 stores have given us strong validation of that belief.

“This investment marks the beginning of our next chapter. We want to take what we have built in North India and create a truly national coffee brand bringing together great Indian coffee, convenience, technology and a distinctive customer experience. We are excited to take First Coffee to the next generation of Indian coffee consumers.”

According to Customer Market Insights, the Indian coffee market is projected to reach $1.23 billion by 2032, growing at a 9.87% CAGR between 2024 and 2033. Rising demand for specialty coffee and convenience has contributed to increased domestic consumption in recent years.

First Coffee currently uses 100% Arabica beans sourced from Indian estates and operates 25 stores across Delhi, Punjab and Haryana. Following the latest fundraise, the company plans to expand into Tier 2 markets and broaden its customer base.