First Coffee Raises $1.3 Million from Japanese VC Firm
First Coffee, a specialty coffee brand for quick pickups, has secured $1.3 million in a pre-Series A funding round spearheaded by the Japanese venture capital firm DG Daiwa Ventures (DGDV).
The round also featured participation from other distinguished investors including BEENEXT, Sanjay Kapoor, Co-founder and MD of Genesis Luxury, Shashank Bhagat, Chairman of BI Group, and various angel investors, according to the company.
Also Read: UP-Japan Meet to Focus on Green Hydrogen, Semiconductor Push
The resources will be allocated to speed up store growth, create a strong corporate team, enhance brand value throughmarketing efforts, and increase investments in product line development. In this most recent funding round, First Coffee has secured $2.5 million overall.
Established by Sohrab Sitaram and Shiv Dhawan in 2024, First Coffee merges design, culture, and an innovative customer experience with mass-premium specialty coffee. The organization combines data-informed ethical sourcing with creative menu design, establishing a modern retail model that enhances operations and simplifies the buying experience for consumers. This investment signifies DGDV’s entry into India’s specialty coffee sector, highlighting the country’s vast and expanding market potential on a global scale.
Makoto Ibi, Head of Global Investment at DGDV, says, “We are glad to partner with First Coffee and fuel their ambition to change coffee culture in India. India remains a key market for us, and through First Coffee we are excited to tap into the specialty coffee space in the country.”
Also Read: Avanade Names Achal Kataria as Managing Director and CEO, India
“Over the last one year, First Coffee has built a very strong brand in North India, especially among younger consumers, serving high-quality specialty coffee across more than 25 outlets. The founders’ previous F&B experience in founding and scaling Keventers has been instrumental in achieving that. We are happy to be a part of this funding round and continue supporting Sohrab and Shiv in their aim to elevate urban India’s coffee-drinking experience,” says Anirudh Garg, Partner at BEENEXT, on First Coffee and its offerings.
First Coffee announced it has increased its market share among consumers by providing premium drinks that emphasize cold coffee-based options and matcha.
First Coffee has seen some of the highest levels of repeat business among young consumers in the sector. First Coffee guarantees that its coffee is of high quality and obtained sustainably.
Shiv Dhawan, Co-founder, First Coffee says, “We are happy to see our theory play out in practice. Over the last couple of years we have learnt a lot, and the experiential data is further shaping our thesis. We believe that our hybrid go-to-market strategy, which includes an increased focus on the small-format model, is a differentiated offering that elevates the customer experience. In the next decade, the size of the out-of-home coffee market in India will grow exponentially, and we want to position ourselves to be right in the middle of this revolution.”
According to Customer Market Insights, the Indian coffee market is expected to hit $1,227.47 million by 2032, increasing at an annual rate of 9.87 percent CAGR from 2024 to 2033. Coffee consumption at home has surged significantly in the past five years, fueled by a growing demand for specialty coffee and ease of access.
By entering this expanding market, the brand serves India’s coffee lovers, especially those from consumers. First Coffee goes beyond selling coffee; it is creating a lifestyle and community centered on coffee culture by partnering with local artists and influencers to enhance customer loyalty.
Also Read: Garuda Aerospace Inks MoU With Timed Automation Solutions
First Coffee provides high-quality beverages made from 100 percent Arabica beans, sourced from the best estates in India. At present, First Coffee operates 25 locations in Delhi, Punjab, and Haryana, allowing customers to easily buy their daily coffee. First Coffee is now preparing to explore Tier 2 markets and expand its customer reach.