Grab-and-go specialty coffee brand First Coffee has successfully raised $1.2 million in a seed funding round led by BEENEXT, a venture capital firm focused on South Asia and
Grab-and-go specialty coffee brand First Coffee has successfully raised $1.2 million in a seed funding round led by BEENEXT, a venture capital firm focused on South Asia and India. This funding is set to propel the startup’s growth and expand its presence in major urban centers across North India.
With the newly acquired capital, First Coffee aims to broaden its footprint in urban locales, primarily targeting New Delhi, NCR, and tier-I cities. The startup plans to open 35 new stores by the second quarter of the next fiscal year, leveraging a small-format quick-service restaurant (QSR) model strategically placed in high-traffic areas like malls, corporate parks, and metro stations.
Founded in 2024 by Sohrab Sitaram and Shiv Dhawan, First Coffee sets itself apart by offering more than just a caffeine fix. “At First Coffee, we’re not just serving coffee; we’re crafting a unique, premium experience while catering to the fast-paced lifestyle of our customers,” says Dhawan. The brand prides itself on sourcing its beans from the Harley Coffee Estate in Chikmagalur, ensuring high-quality, sustainably produced coffee.
A significant aspect of First Coffee’s model is its integration of technology and sustainability. The startup employs experiential big data and AI-driven analysis to enhance customer engagement and create a personalized retail experience. Environmentally conscious practices are also at the forefront, with the use of shade-grown coffee and eco-friendly initiatives like man-made lakes for irrigation.
“My experience in the QSR industry 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, allows us to carve a strong niche,” explains Sitaram. The brand’s current four outlets are seeing impressive growth, boasting a 25% month-on-month increase and serving around 100 cups of specialty coffee daily, highlighting strong customer loyalty.
The Indian coffee market is on a remarkable growth trajectory, projected to reach a value of $1,227.47 million by 2032, with an annual growth rate of 9.87% from 2024 to 2033, according to Customer Market Insights. This positions First Coffee well within a thriving industry.
“First Coffee is uniquely positioned not just as a coffee seller but as a provider of a coffee experience, blending technology, sustainability, and premium quality. With the leadership of Sohrab and Shiv, industry veterans in QSR, the brand is setting new standards in India’s specialty coffee market,” remarks Anirudh Garg, Partner at BEENEXT.
With its innovative approach and ambitious expansion plans, First Coffee is poised to make a significant impact on the specialty coffee scene in India. By prioritizing quality, sustainability, and customer experience, the startup is not only meeting the rising demand for specialty coffee but also redefining what a coffee shop can be.
