Summary:

  • Founded in 2024 by entrepreneurs Sohrab Sitaram and Shiv Dhawan, First Coffee aims to combine design, culture, and technology.

  • This fresh round is led by BEENEXT.

  • The newly raised funds will be pivotal for First Coffee as it embarks on an ambitious expansion strategy

Specialty coffee brand First Coffee has raised $1.2 million in its seed funding round, with BEENEXT leading the investment. This fresh capital injection marks a significant milestone for the young company, which aims to establish itself as a key player in India’s burgeoning coffee market. Alongside BEENEXT, the funding round saw participation from an impressive roster of notable investors.

These include Ashish Gupta of Helion Venture Partners, AngelList India, and Dr. Ritesh Malik, the founder of Innov8. Additionally, Sahil Malik, founder of Da Milano, Chandini Purnesh, owner of Harley Coffee Estate, Aman Arora, co-founder of Board at Keventers, Agastya Dalmia, director at Keventers, Aman Bahel from Apex Group, Nakul Dev Chawla of Art Mumbai, and Dr. Shriram Nene contributed to the round, demonstrating broad interest from various sectors.

The newly raised funds will be pivotal for First Coffee as it embarks on an ambitious expansion strategy. According to a company press release, it will focus on growing its physical presence across key urban centers, particularly in New Delhi, the National Capital Region (NCR), and tier I cities in North India. By establishing a larger footprint, First Coffee intends to bring its premium specialty coffee experience to a wider audience, distinguishing itself in a market that is steadily evolving. The company’s strategy is launching small-format Quick Service Restaurant (QSR) outlets in high-traffic locations such as shopping malls, corporate parks, bustling high streets, and metro stations. These compact outlets will allow the brand to attract coffee lovers in densely populated areas, where the demand for quick yet high-quality coffee is on the rise.

The company has set a target of opening 35 stores across the country by the second quarter of the next fiscal year, illustrating the scale of its vision. In addition to expanding its store network, First Coffee plans to allocate a portion of the funds towards ramping up its marketing efforts. With the competitive nature of the coffee industry in India, heightened marketing initiatives will play a crucial role in building brand awareness and attracting new customers. The company is also looking to strengthen its workforce through strategic hiring, positioning itself for long-term success.

Founded in 2024 by entrepreneurs Sohrab Sitaram and Shiv Dhawan, First Coffee is more than just another coffee brand. It aims to combine design, culture, and technology to create a unique customer experience. This innovative approach is underpinned by the integration of experiential big data, which is analyzed using artificial intelligence (AI). By utilizing technology to understand customer preferences and behaviors, First Coffee is striving to create a tech-driven retail model that enhances the coffee-buying experience. This focus on innovation extends to every facet of the company’s operations, ensuring it stands out in a crowded market.

Beyond technology, First Coffee is deeply committed to sustainability. The company sources its coffee beans from shade-grown farms, ensuring that its product is cultivated in an eco-friendly manner. To further enhance its environmental impact, the company uses innovative agricultural techniques, such as man-made lakes for irrigation and traditional insect traps, to minimize harm to the environment. This emphasis on sustainability allows First Coffee to offer premium coffee that is not only of the highest quality but also ethically sourced.

First Coffee’s growth comes at a time when the Indian coffee market is expanding rapidly. According to Customer Market Insights, the Indian coffee market is projected to reach $1,227.47 million by 2032, with an annual growth rate of 9.87% from 2024 to 2033. This surge is driven by a growing number of urban consumers who are increasingly seeking out premium coffee experiences, as well as the rise of café culture in India’s metropolitan areas.

As First Coffee gears up to take advantage of these market dynamics, the company is well-positioned to carve out a significant niche for itself. By combining premium quality coffee with cutting-edge technology and a sustainable sourcing strategy, First Coffee is poised to be a key player in the Indian specialty coffee market. With its aggressive expansion plans, strong investor backing, and a clear vision for the future, the company is ready to embark on its next chapter of growth.