The take-away focused New Delhi-based operator will use the funds to reach 35 sites in 2024, invest in marketing and expand its team
First Coffee co-founder Sohrab Sitaram | Photo credit: First Coffee
New Delhi-based First Coffee has raised $1.2m in a seed funding round led by Singapore-based venture capital firm BEENEXT.
Founded by Sohrab Sitaram and Shiv Dhawan in 2023 as India’s ‘first single origin, single estate coffee business’, First Coffee opened its debut store at New Delhi’s Pacific Outlet Mall in April 2024 and currently operates four sites across Delhi and Gurugram.
The business exclusively sources coffee from Harley Coffee Estate in Karnataka, one of India’s key coffee growing states, and where much of the country’s burgeoning specialty coffee production is located.
In a press release, First Coffee said the new investment will support plans to reach 35 stores across Tier 1 cities in North India by mid-2025. Outlet growth will focus on small-format stores in high-footfall locations, such as shopping centres, corporate parks, high streets and metro stations. The funding will also be used for hiring and marketing campaigns.
“Our grab-and-go model, combined with a focus on sustainability and tech-driven customer engagement, is enabling us to carve a strong niche. Our current four stores have seen 25% month-on-month growth. Each outlet serves around 100 cups of specialty coffee every day, showcasing consistent customer loyalty and engagement,” said Sitaram.
India’s domestic specialty coffee segment is becoming increasingly competitive as more start-ups and entrepreneurs seek to gain a foothold in the country’s fast-growing branded coffee shop market.
Mumbai-based abCoffee has raised over $5m to support outlet growth in India – growing from 12 stores to 67 in the last 12 months alone. The small format coffee chain sees potential for 10,000 sites across India by 2034.
Additionally, Jaipur-based Nothing Before Coffee (NBC) is seeking to raise $4m to accelerate outlet expansion in India and abroad. The value-focused chain currently operates 64 stores in India alongside a single international site in Portugal and has plans to reach 400 stores by 2026.
Established specialty brands such as Blue Tokai Coffee Roasters and Third Wave Coffee have also attracted investment within the last 12 months to expand to new cities – further highlighting India’s growing importance as a global hotspot for coffee and hospitality commerce.
Founded in 2015, BEENEXT invests in early-stage tech start-ups, primarily in India, China, Japan and Indonesia. The venture capital firm has invested in over 200 companies globally, including loungewear brand Bummer, on-demand grocery delivery service Chopp and farm management solutions Ceres Imaging.
Individual investors in First Coffee’s $1.2m raise include Helion Venture Partners Founder Ashish Gupta, Sahil Malik, Founder of luxury handbag brand Da Milano, Harley Coffee Estate owner Chandini Purnesh and Aman Arora, who co-founded milkshake café chain Keventers alongside Sohrab Sitaram.