First Coffee raises $1.3M pre-Series A led by DG Daiwa Ventures
Indian speciality coffee chain First Coffee has raised $1.3 million in a pre-Series A funding round. The terms of the round were not disclosed beyond the amount.
The round was led by Japanese venture capital firm DG Daiwa Ventures (DGDV), with participation from existing investor BEENEXT and angel investors including Sanjay Kapoor and Shashank Bhagat.
The startup disclosed the details on 19 August; DGDV had previously announced its investment on 5 February. The latest round takes First Coffee's total funding to $2.5 million.
First Coffee operates a chain of grab-and-go speciality coffee outlets. Founded by Sohrab Sitaram and Shiv Dhawan, it combines smaller retail formats with a focus on design and convenience.
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The startup has grown to 25 stores across Delhi, Punjab, and Haryana, and sources 100% of its coffee from Harley Estate in Chikmagalur, Karnataka, single-origin Arabica beans grown using sustainable, shade-cultivated farming methods. Cold coffee-based drinks and matcha feature prominently on its menu, and Gen Z consumers form a meaningful part of its customer base.
The fresh capital is earmarked for store expansion, strengthening the corporate team, increased marketing, and new product development. Critically, First Coffee plans to move beyond its existing urban markets and establish a presence in Tier-2 cities, a shift that tests whether premium, design-led coffee experiences can find sustainable demand outside India's metros.
For international investors and partners watching India's consumer story, First Coffee represents a bet on speciality coffee moving from a niche, metro product to a broader, everyday category served through an asset-light, small-format model. DGDV's participation marks a cross-border conviction play from Japan on the rise of coffee culture among younger Indian consumers.
"We are glad to partner with First Coffee and fuel their ambition to change coffee culture in India," said Makoto Ibi, head of global investment at DGDV.
BEENEXT partner Anirudh Garg pointed to the startup's brand strength in North India and Sitaram's prior experience scaling the beverages brand Keventers. "We started First Coffee with a simple belief: great speciality coffee should be more accessible and become part of everyday India," Sitaram said.
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