First Coffee is planning to open 35 stores across the country by the second quarter of next fiscal year
Grab and Go specialty coffee brand First Coffee has raised $1.2 million in seed funding round led by venture capital firm BEENEXT. The company will use the fund to focus on expansion and bring its premium specialty coffee experience to more locations across the country.
Other investors, such as Ashish Gupta (Helion Venture Partners), AngelList India, Dr Ritesh Malik (Founder, Innov8), and Sahil Malik (Founder, Da Milano), also participated in the round. In terms of expansion, the start-up intends to expand in key urban areas of New Delhi, NCR, and Tier 1 cities in North India.
As per the company statement, First Coffee is set to open 35 stores across the country by the second quarter of next fiscal year. Along with it, the company will focus on hiring.
Sohrab Sitaram, co-founder of First Coffee and Keventers, said in a statement, “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.”
Founded in 2024 by Sohrab Sitaram and Shiv Dhawan, First Coffee claims to blend design, culture, and a fresh customer experience with high-quality coffee. To further elevate customer engagement and optimize operations, the company utilizes experiential big data combined with AI-driven analytics, building a technology-focused retail approach.
There has been a surge of interest by VCs and other investors for coffee chain start-ups. As per data platform Tracxn, as of September, a total of $48.4 million was raised by new-age coffee chains as against $39 million that was received in 2023.
Several new-age coffee chains, such as ThirdWave, BlueTokai, and Slay, have been eyeing the Indian market for further growth. Last month, coffee start-up BlueTokai raised $35 million in Series C funding. It was led by Verlinvest. Existing investors such as Anicut Capital and A91 Partners also took part in the investment. Additionally, ThirdWave is planning to add more than 50 stores and expand to more cities. The company will open in cities including Bengaluru, Delhi-National Capital Region (NCR), Mumbai and Hyderabad.