Specialty coffee chain First Coffee has secured $1.3 million in a pre-Series A round led by DG Daiwa Ventures. The capital will fund store network growth, marketing, and entry into Tier 2 cities, as the company scales its grab-and-go business model.
First Coffee, an emerging player in the Indian specialty coffee market, has raised $1.3 million in a pre-Series A funding round. The investment was led by Japan-based DG Daiwa Ventures, with participation from existing backers such as BEENEXT and angel investors Sanjay Kapoor and Shashank Bhagat. This latest infusion brings the company's total capital raised to approximately $2.5 million.
Founded in 2024 by industry veterans Sohrab Sitaram and Shiv Dhawan, the brand operates under the entity Savage Coffee Private Limited. The founders bring significant experience in the food and beverage sector, notably through their previous work with the beverage brand Keventers. The company has positioned itself in the mass-premium segment, focusing on a grab-and-go model rather than the traditional, large-format café experience.
Strategic Focus on Expansion
The newly acquired funds are designated for several growth pillars. First Coffee plans to accelerate its store expansion, which currently spans over 25 outlets across North India, including locations in Delhi, Punjab, and Haryana. A key part of this strategy is moving beyond metropolitan markets to establish a presence in Tier 2 cities, where the company sees untapped demand for specialty coffee.
Beyond physical expansion, the company intends to use the capital to recruit corporate leadership, strengthen its marketing efforts, and further develop its product lines. By using data-driven insights for menu engineering and ethical sourcing, the chain aims to maintain high repeat purchase rates among its target demographic, particularly Gen Z consumers who prefer convenience and premium quality.
Competitive Market Landscape
The Indian coffee segment has seen rapid growth, with the market expected to expand as consumption habits shift toward specialty beverages. However, First Coffee faces a highly competitive environment. It operates alongside established multinational giants like Tata Starbucks and prominent home-grown specialty chains such as Blue Tokai and Third Wave Coffee, each competing for real estate in high-footfall areas.
Success in this space depends heavily on execution. Maintaining quality standards while rapidly scaling from 25 stores to a larger network presents a significant operational challenge. Additionally, the company is vulnerable to shifts in consumer discretionary spending and fluctuations in raw material prices, such as coffee beans and dairy. The ability to distinguish its grab-and-go format from full-service café experiences will be a critical monitorable as it enters smaller cities where coffee culture is still evolving.