First Coffee raises $1.3m pre-Series A to fund store expansion
The 25-store North India specialty coffee chain raised $1.3 million in a round led by DG Daiwa Ventures. First Coffee plans to add stores, strengthen its corporate team, develop products and expand into Tier 2 markets.
What happened
First Coffee raised $1.3 million in a pre-Series A round led by DG Daiwa Ventures to expand stores, build its corporate team and develop products. The 25-store
Key facts
- $1.3 million pre-Series A funding
- $2.5 million raised to date
- 25 stores
- founded in 2024
- Indian coffee market projected at $1,227.47 million by 2032
- 9.87% CAGR from 2024 to 2033
Why this matters
With total funding at $2.5 million, First Coffee becomes a better-capitalized regional platform for potential partnerships, product collaborations and future strategic expansion.
What to watch
- Number, location, and format of net new stores opened over the next 12 months.
- Evidence of Tier 2 city entry and whether launches occur in clusters rather than isolated outlets.
- Same-store sales, average order value, repeat rates, and store payback periods.
- New packaged-product, delivery, subscription, or corporate-client launches.
- Follow-on funding, strategic investors, or franchise partnerships.
- Changes in coffee-bean costs, rental commitments, and employee attrition that could affect unit economics.
- Open stores in clustered North India micro-markets before entering dispersed Tier 2 locations.
- Build corporate functions in operations, sourcing, real estate, marketing, and supply-chain planning.
- Launch or broaden packaged coffee, ready-to-drink, gifting, and B2B corporate beverage offerings.
- Use the DG Daiwa Ventures backing to pursue partnerships, future institutional funding, and stronger landlord negotiations.
- Standardize store-level metrics and menu architecture to protect contribution margins during expansion.