Specialty coffee brand First Coffee raises $1.2 million in a Seed round

Grab-and-go specialty coffee brand First Coffee has raised $1.2 million in a seed funding round led by BEENEXT, a venture fund focused on South Asia and India. 

Several angel investors also participated in the round, including Ashish Gupta (Helion Venture Partners), AngelList India, Dr. Ritesh Malik (Founder, Innov8), Sahil Malik (Founder, Da Milano), Chandini Purnesh (Owner, Harley Coffee Estate), Aman Arora (Co-Founder, Board - Keventers), Agastya Dalmia (Director, Keventers), Aman Bahel (Apex Group), Nakul Dev Chawla (Art Mumbai), and Dr. Shriram Nene.

Focused on expanding footprint

With the newly raised capital, First Coffee aims to expand its footprint across major urban centres, focusing on New Delhi, NCR, and tier-I cities in North India. The startup plans to open 35 stores by the second quarter of the next fiscal year.

First Coffee's store model centres around small-format QSR (quick-service restaurant) outlets strategically placed in high-traffic locations such as malls, corporate parks, high streets, and metro stations.

Who are the founders?

First Coffee, founded in 2024 by Sohrab Sitaram and Shiv Dhawan, distinguishes itself by offering more than just coffee.

“At First Coffee, we’re not just serving coffee; we’re crafting a unique, premium experience while still catering to the fast-paced lifestyle of our customers. We’re committed to delivering exceptional coffee at a competitive price point, making world-class coffee accessible to everyone," said Dhawan.

The startup sources its coffee beans from the Harley Coffee Estate in Chikmagalur, ensuring that it delivers high-quality, sustainably produced coffee to its customers.

Technological and sustainable innovations

One of the key differentiators of First Coffee is its integration of technology and sustainability into its business model. The startup claims that it uses experiential big data and AI-driven analysis to create a personalized retail experience for its customers.

In terms of sustainability, First Coffee takes an eco-conscious approach, using shade-grown coffee and eco-friendly practices like man-made lakes for irrigation and traditional insect traps to ensure responsible sourcing.

“My background in the Quick Service Restaurants (QSR) has taught me the importance of efficiency without compromising on quality. Our grab-and-go model, combined with a focus on sustainability and tech-driven customer engagement, is enabling us to carve a strong niche. Our current four stores have seen 25 percent month-on-month growth. Each outlet serves around 100 cups of specialty coffee every day, showcasing consistent customer loyalty and engagement," Sitaram said.

Indian coffee market growth

According to Customer Market Insights, the Indian coffee market is experiencing rapid growth, with a projected value of $1227.47 million by 2032. The market is expected to grow at an annual rate of 9.87% from 2024 to 2033. 

“First Coffee is uniquely placed where they are not just selling a product but rather a coffee experience, blending tech, sustainability, and coffee. Under the abled leadership of Sohrab and Shiv, industry veterans in the space of quick service restaurants, the brand is creating a new standard in India's specialty coffee market,” said Anirudh Garg, Partner at BEENEXT, on First Coffee and its offerings.