Specialty Coffee Brand First Coffee Secures $1.3 Mn in Fresh Funding

• By |    August 19, 2026

First Coffee has raised $1.3 million in new capital, a milestone for the specialty‑coffee chain as it prepares to widen its footprint across India. The injection of funds reflects rising demand for premium coffee, particularly among younger shoppers who value quick, budget‑friendly café stops.

Started by Sohrab Sitaram and Shiv Dhawan, First Coffee runs a grab‑and‑go concept with compact kiosks. Rather than large sit‑down cafés where patrons linger, the brand delivers high‑quality coffee swiftly in busy spots such as main streets, shopping malls, office complexes, and transit hubs.

This model lets the company prioritize convenience while keeping overhead low. Small‑format outlets need less floor space and fewer staff than traditional cafés, making rapid multi‑city rollout feasible. Success, however, hinges on steady foot traffic, fast service, and uniform product quality.

The brand already operates in Delhi, Punjab, and Haryana and intends to use the fresh funding to push into additional cities, including Tier‑2 markets. This move could tap into a broader audience as coffee culture spreads beyond the country’s biggest metros.

First Coffee also targets Gen Z and young professionals. Its menu features specialty drinks like cold brew and matcha alongside familiar favorites, giving customers a premium yet quick‑service option.

The proceeds will fund new store openings, staff recruitment, marketing campaigns, and product innovation. Expanding the retail footprint is just one piece of building a lasting F&B business; maintaining consistent taste, service, and experience across every location will be equally vital.

The investment round was led by Japanese VC firm DG Daiwa Ventures, with participation from BEENEXT, Sanjay Kapoor, Shashank Bhagat, and several angel backers. DG Daiwa Ventures’ entry marks its first foray into India’s specialty‑coffee space.

First Coffee is stepping into a crowded arena that includes global chains, home‑grown café brands, and independent shops. Its edge may lie in the petite format, speedy service, and placement in high‑traffic zones. Long‑term viability, though, will depend on cultivating loyal patrons rather than relying solely on novelty.

With this capital infusion, First Coffee can move beyond its early regional base and aim for a national presence. If it manages to pair excellent coffee, accessible sites, fair pricing, and reliable service, it could become a noteworthy contender in India’s expanding specialty‑coffee landscape.

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