First Coffee Raises $1.3 Million to Take Its Grab-and-Go Coffee Brand Across India

First Coffee has raised $1.3 million in a Pre-Series A funding round, giving the young coffee chain fresh capital to expand its presence in India’s fast-growing specialty coffee market.

The round was led by Japanese venture capital firm DG Daiwa Ventures. Existing investor BEENEXT also participated, along with Sanjay Kapoor, Shashank Bhagat and other angel investors, according to reports.

For a brand that is still quite new, this funding is a strong signal. India’s coffee market is no longer limited to slow cafe visits or premium outlets in big malls. A new group of young consumers now wants coffee that is quick, good-looking, fairly priced and easy to pick up during college, office or shopping hours. First Coffee is trying to build exactly that kind of brand.

What First Coffee does

First Coffee is a grab-and-go specialty coffee brand. In simple words, it focuses on quick service instead of the traditional sit-down café model.

The brand sells premium coffee-based drinks, cold coffee, matcha and other beverages aimed mainly at younger consumers, especially Gen Z. Its model is built around smaller stores, fast ordering and everyday convenience.

First Coffee uses 100 percent Arabica beans sourced from Indian estates. That matters because many young buyers today care not only about taste, but also about where the coffee comes from and how consistent it feels across stores.

The company was founded by Sohrab Sitaram and Shiv Dhawan in 2024.

Why First Coffee raised funding

The fresh funding will mainly support expansion.

First Coffee plans to grow its store network, strengthen its corporate team, invest in marketing and develop new products. The company also wants to move beyond large urban markets and enter Tier-2 cities.

This is an important step because coffee chains cannot grow only on product quality. They also need the right locations, trained staff, supply chain control, branding and repeat customers. Funding helps a young brand build these pieces faster.

For example, if First Coffee wants to open stores in cities such as Jaipur, Lucknow, Chandigarh, Indore or Ahmedabad, it will need money for rentals, equipment, hiring, local marketing and operations. Each new city needs careful planning, because coffee habits can change from one market to another.

Current store presence

First Coffee has grown to 25 stores across Delhi, Punjab and Haryana, according to reports. The company has raised $2.5 million in total funding so far.

That means this Pre-Series A round is not the brand’s first external capital. It had earlier raised seed funding led by BEENEXT, with participation from several angel investors.

The new round gives First Coffee a stronger base to build from North India into a wider national brand.

What is the startup’s aim

First Coffee wants to make specialty coffee more accessible for daily consumers.

Specialty coffee often sounds expensive or complicated to beginners. Many people connect it with premium cafés, slow brewing and high prices. First Coffee is trying to simplify that experience.

Its aim is to offer better-quality coffee in a format that feels easy, quick and youthful. A college student can pick up an iced coffee between classes. A working professional can grab a drink before a meeting. A group of friends can try matcha or cold coffee without turning it into a long cafe outing.

This is where the brand’s “grab-and-go” model becomes useful. It reduces the need for large seating spaces and can make the format easier to scale across busy neighbourhoods, office areas, metro stations and high streets.

Why investors may like this space

India’s out-of-home coffee market is becoming more active. Young consumers are spending more on beverages, casual hangouts and branded food experiences. Coffee has also become a lifestyle product, especially in large cities.

Investors may see First Coffee as a play on three trends – rising youth spending, demand for convenient premium drinks and the growth of organized food service brands.

DG Daiwa Ventures’ interest is also notable because this is reported as its first investment in India’s specialty coffee market. The Japanese VC firm’s backing can help First Coffee with capital, network and long-term investor confidence.

Competitors in the coffee market

First Coffee is entering a busy market. It will compete with large and emerging coffee brands such as Starbucks, Costa Coffee, Tim Hortons, Blue Tokai, Third Wave Coffee, Barista, Nothing Before Coffee and Slay Coffee.

Each brand has a different style. Starbucks has a strong global cafe image. Blue Tokai and Third Wave Coffee are known for specialty coffee and café culture. Tim Hortons and Costa Coffee bring international positioning. Smaller Indian chains often compete on price, location and speed.

First Coffee’s challenge will be to stand out without becoming too expensive. If it can offer good taste, quick service and strong branding at accessible prices, it may find space between premium cafés and mass-market beverage chains.

What can go right for First Coffee

1. The biggest opportunity is repeat consumption. Coffee is not a one-time purchase like a gadget. If customers like the taste and price, they may come back many times a month.
2. The second opportunity is store format. Small, fast-service outlets can expand faster than large cafés if the economics work well.
3. The third opportunity is Tier-2 cities. Many smaller Indian cities now have young consumers who follow the same food and beverage trends as metro buyers. But these markets still have space for fresh brands with good design and reasonable pricing.

What can be challenging

Expansion is exciting, but it can also be risky. Food and beverage brands need strict consistency. A drink should taste the same in Delhi, Chandigarh and Jaipur. If quality changes from store to store, customers notice quickly.

Real estate cost is another challenge. Good locations are expensive. A young brand must balance visibility with profitability.

Product pricing will also matter. First Coffee must remain premium enough to feel aspirational, but not so costly that everyday customers stop coming back.

Conclusion with key takeaways

First Coffee’s $1.3 million Pre-Series A round comes at a good time for India’s specialty coffee market. The brand is young, but it is entering a category where consumer habits are changing quickly.

With DG Daiwa Ventures leading the round and BEENEXT continuing its support, First Coffee now has fresh capital to open more stores, build its team, market the brand and create new products.

Key takeaways –

• First Coffee has raised $1.3 million in Pre-Series A funding.
• The round was led by Japanese VC firm DG Daiwa Ventures.
• BEENEXT, Sanjay Kapoor, Shashank Bhagat and other angel investors also participated.
• The brand was founded by Sohrab Sitaram and Shiv Dhawan.
• First Coffee currently has 25 stores across Delhi, Punjab and Haryana.
• The funding will support store expansion, hiring, marketing and product development.
• The company also plans to enter Tier-2 cities.

Facts Input- ETRetail, The Hindu BusinessLine, IndiaRetailing, DG Daiwa Ventures portfolio