Indian speciality coffee start-up First Coffee has successfully raised $1.2m in seed funding to fuel its expansion plans.

 The investment round was led by Singapore-based venture capital firm BEENEXT, with participation from several individual investors.

The company will use the funds to increase its number of stores to 35 across Tier 1 cities in the north of India by mid-2025, establishing small-format stores in areas with high foot traffic, such as shopping centres, corporate parks, high streets and metro stations.

The funding will also facilitate hiring initiatives and marketing campaigns aimed at strengthening First Coffee's market position.

The start-up, founded by Sohrab Sitaram and Shiv Dhawan in 2023, is known as India's first single-origin, single-estate coffee business.

First Coffee launched its first store in April 2024 at New Delhi's Pacific Outlet Mall and currently operates four locations in Delhi and Gurugram.

Its coffee is sourced from the Harley coffee estate in the state of Karnataka.

Sitaram said: “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 speciality coffee every day, showcasing consistent customer loyalty and engagement.”

In September 2024, Verlinvest acquired a significant stake in Blue Tokai, a premium coffee and bakery brand in India, through a $35m investment.

The investment occurred through a Series C funding round that also featured contributions from existing investors Anicut Capital and A91 Partners.

Blue Tokai was established in 2013 by Matt Chitharanjan, Namrata Asthana and Shivam Shahi. The brand has experienced significant recent growth, increasing its number of outlets to 130.