Indian specialty coffee brand First Coffee has raised $1.3 million in a pre-Series A funding round as it looks to accelerate its expansion across the country and tap into India’s fast-growing out-of-home coffee market.
The round was led by Japanese venture capital firm DG Daiwa Ventures (DGDV), marking the investor’s first investment in India’s specialty coffee sector. Existing backers and angel investors, including BEENEXT, Sanjay Kapoor and Shashank Bhagat, also participated.
Founded in 2024 by Sohrab Sitaram and Shiv Dhawan, First Coffee has expanded to 25 stores across Delhi, Punjab and Haryana. The company has raised $2.5 million to date.
From city stores to Tier-2 markets
First Coffee plans to deploy the new capital toward expanding its store network, strengthening its corporate team, increasing marketing investments and developing new products.
The company also plans to move beyond major urban centres and enter Tier-2 cities, broadening its footprint as specialty coffee consumption spreads beyond India’s largest metros.
The brand operates a grab-and-go specialty coffee model, targeting younger consumers, particularly Gen Z, with offerings such as cold coffee and matcha.
Building a coffee lifestyle brand
First Coffee sources 100% Arabica beans from Indian estates and is positioning itself around a combination of quality, convenience, technology and accessible pricing.
Beyond selling coffee, the company aims to build a lifestyle and community-oriented brand around the beverage category.
The founders believe India’s out-of-home coffee market is entering a period of rapid growth, creating an opportunity for specialty coffee brands to scale beyond traditional café formats.
With its latest funding, First Coffee is betting that the next wave of India’s coffee boom will not be confined to the country’s biggest cities.