First Coffee Secures $1.2M in Funding Led by Beenext: Expanding India’s Specialty Coffee Scene

First Coffee, a grab-and-go specialty coffee brand, has successfully raised $1.2 million in a funding round led by Beenext, a venture fund focused on South Asia and India. The round saw participation from prominent investors including Ashish Gupta (Helion Venture Partners), AngelList India, Ritesh Malik (Innov8), Sahil Malik (Da Milano), Aman Arora (Keventers), and Agastya Dalmia (Keventers).

Expansion and Investment in Key Areas

The fresh funds will be utilized to fuel First Coffee's expansion plans, with a focus on growing its footprint across key urban areas in New Delhi, NCR, and Tier-I cities in North India. The brand aims to open 35 stores in high-traffic locations such as malls, corporate parks, high streets, and metro stations by the second quarter of the next fiscal year.

Additionally, the company will invest in hiring new talent and enhancing marketing efforts to further strengthen its brand presence. This aggressive expansion strategy highlights the growing demand for specialty coffee in India and the brand’s mission to meet it.

Bringing True Specialty Coffee to India

Founded in 2024 by Sohrab Sitaram and Shiv Dhawan, First Coffee distinguishes itself by offering premium specialty coffee, scoring 91% on the Specialty Coffee Association (SCA) scale. "We are the first brand to bring true specialty coffee to the Indian market. At First Coffee, we’re not just serving coffee; we’re crafting a unique, premium experience while still catering to the fast-paced lifestyle of our customers," says co-founder Shiv Dhawan.

First Coffee sources its beans from the Harley Coffee Estate in Chikmagalur, known for producing some of India’s finest coffee. This dedication to quality and sustainability is central to the brand’s appeal.

Investors’ Confidence in Specialty Coffee Brands

The funding round led by Beenext is part of a larger trend of increased investor interest in new-age food and beverage brands, particularly in the specialty coffee segment. "First Coffee is uniquely positioned to offer not just a product but an entire coffee experience, blending technology, sustainability, and top-tier coffee," says Anirudh Garg, partner at Beenext.

Rising Competition in India’s Specialty Coffee Market

First Coffee’s success follows a series of major funding announcements in India’s specialty coffee industry. In March, AbCoffee raised $3.4 million in a Series A funding round led by Nexus Venture Partners, while Subko, a specialty coffee roaster and craft bakehouse, secured $10 million led by Zerodha cofounder Nikhil Kamath. Other players in the space, including Slay Coffee, Sleepy Owl Coffee, Hatti Kaapi, Blue Tokai, and Rage Coffee, are also making significant strides with support from leading venture capital firms.

A Promising Future for Specialty Coffee in India

As consumer preferences shift towards premium coffee experiences, brands like First Coffee are leading the charge in transforming India’s coffee culture. By combining convenience with a high-quality product, First Coffee is well-positioned to capture a growing segment of the market. With plans for rapid expansion and strong investor backing, the future looks bright for the brand and the specialty coffee industry as a whole.