Specialty coffee brand First Coffee raises $1.2 million in seed round

On-the-go specialty coffee brand First Coffee has raised $1.2 million in a seed funds round led by FOLLOWINGa 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 of Innov8), Sahil Malik (founder of Da Milano), Chandini Purnesh (owner of Harley Coffee Estate), Aman Arora (Co-Founder, Board of Directors – 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 presence in 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 focuses on small-format QSR (quick service restaurants) establishments strategically located in high-traffic locations such as shopping malls, corporate parks, main streets and subway stations.

Who are the founders?

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

“At First Coffee, we don’t just serve coffee; We are creating a unique and premium experience while still catering to the fast-paced lifestyle of our customers. “We are committed to offering exceptional coffee at a competitive price, making world-class coffee accessible to everyone,” said Dhawan.

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

Technological and sustainable innovations

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

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

“My experience in quick service restaurants (QSR) has taught me the importance of efficiency without compromising quality. Our ready-to-go model, combined with a focus on sustainability and technology-driven customer engagement, is allowing us to create a strong niche. Our four current stores have seen 25 percent month-on-month growth. Each outlet serves around 100 cups of specialty coffee every day, demonstrating customer loyalty and continued commitment,” Sitaram said.

Indian coffee market growth

According to Customer Market Insights, the Indian coffee market is experiencing rapid growth, with a projected value of $1,227.47 million by 2032. The market is expected to grow at an annual rate of 9.87% between 2024 and 2033.

“First Coffee occupies a unique position where they not only sell a product but rather a coffee experience, combining technology, sustainability and coffee. Under the able leadership of Sohrab and Shiv, industry veterans in the quick service restaurant space, the brand is creating a new standard in the Indian specialty coffee market,” said Anirudh Garg, Partner at BEENEXT, on First Coffee and its offers.



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