Specialty Coffee Brand First Coffee Secures $1.3 Mn in Fresh Funding
- ByStartupStory | August 19, 2026
First Coffee has secured $1.3 million in fresh funding, marking another important step for the specialty coffee brand as it prepares to expand its presence across India. The funding comes as consumer interest in premium coffee continues to grow, especially among younger customers looking for convenient and affordable café experiences.
Founded by Sohrab Sitaram and Shiv Dhawan, First Coffee follows a grab-and-go model built around small-format outlets. Instead of focusing on large cafés where customers spend hours, the brand aims to serve quality coffee quickly in busy locations such as high streets, malls, corporate parks, and transit areas.
This approach allows First Coffee to focus on convenience while keeping its operations relatively simple. Smaller outlets can require less space and fewer resources than traditional cafés, making it easier for the company to open stores in multiple locations. However, the model also depends heavily on footfall, efficient service, and consistent product quality.
The company has already built a presence across Delhi, Punjab, and Haryana, and plans to use the fresh capital to expand into more cities, including Tier-2 markets. This could give First Coffee access to a wider customer base as coffee culture becomes more popular beyond India’s largest metros.
The brand is also trying to appeal to Gen Z and young working consumers. Its menu includes specialty beverages such as cold coffee and matcha, alongside more familiar options. This mix allows First Coffee to attract customers who want something premium but still prefer a quick and accessible experience.
The funding will support store expansion, hiring, marketing, and product development. These investments will be important as the company grows because opening outlets is only one part of building a successful food-and-beverage brand. First Coffee will also need to maintain the same taste, service standards, and overall experience across every location.
The round was led by Japanese venture capital firm DG Daiwa Ventures, with participation from BEENEXT, Sanjay Kapoor, Shashank Bhagat, and other angel investors. DG Daiwa Ventures’ involvement is notable because it represents its first investment in India’s specialty coffee segment.
First Coffee is entering a competitive market, with established international chains, Indian café brands, and independent coffee shops all competing for customers. Its advantage could come from its smaller format, quick service, and focus on high-traffic locations. Still, long-term success will depend on whether it can build customer loyalty rather than rely only on curiosity around a new outlet.
With this funding, First Coffee now has the opportunity to move beyond its initial regional footprint and build a stronger national brand. If it can combine good coffee, convenient locations, reasonable pricing, and consistent service, it could become a notable player in India’s growing specialty coffee market.
Follow Startup Story
Related Posts
