Specialty Coffee Brand First Coffee Secures $1.3 Million in Pre-Series A Funding Led by DG Daiwa Ventures

New Delhi-based 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). The round also saw participation from existing investor BEENEXT, alongside notable angel investors including Sanjay Kapoor, Co-founder and MD of Genesis Luxury, and Shashank Bhagat, Chairman of BI Group.

With this latest capital infusion, First Coffee has raised a total of $2.5 million to date. Founded in 2024 by Sohrab Sitaram and Shiv Dhawan—who previously founded and scaled Keventers—the grab-and-go brand combines design, culture, and a data-driven retail model focusing on mass-premium specialty coffee.

The company plans to deploy the newly raised funds to accelerate its store expansion, build a corporate team, strengthen brand value through marketing, and further invest in product line development. Currently, First Coffee operates 25 stores across Delhi, Punjab, and Haryana, and is gearing up to expand into Tier 2 markets.

Makoto Ibi, Head of Global Investment at DGDV, noted that the investment marks the firm's first foray into India’s specialty coffee market. Anirudh Garg, Partner at BEENEXT, highlighted the founders' prior food and beverage experience as instrumental in scaling the brand over the past year, particularly among younger consumers in North India.

First Coffee utilizes a hybrid go-to-market strategy centered around small-format models. The brand primarily serves cold coffee-based beverages and matcha, targeting Gen Z consumers by offering 100% Arabica beans sourced from Indian estates. The company reports strong repeat rates among its customer base, supported by community-building efforts such as collaborations with local artists and influencers.

According to Customer Market Insights, the broader Indian coffee market is projected to reach $1,227.47 million by 2032, expanding at a compound annual growth rate (CAGR) of 9.87% from 2024 to 2033. Driven by a rising consumer preference for convenience and specialty options, out-of-home domestic coffee consumption has seen substantial growth over the past five years.

Co-founder Shiv Dhawan stated that the company's experimental data and hybrid retail strategy align with the anticipated long-term expansion of India's out-of-home coffee sector. As the brand scales its footprint beyond North India, it aims to capitalize on these changing consumption patterns.

"The entry of Japanese venture capital into India's specialty coffee segment demonstrates the growing global interest in the country's quick-service and beverage retail sectors. With founders who bring prior scaling experience in the food and beverage industry, First Coffee is positioning itself strategically within a rapidly expanding urban market. For early-stage brands in this space, maintaining operational efficiency through small-format models while adapting to shifting consumer preferences will be crucial for sustained growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes