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abCoffee CEO Abhijeet Anand | Photo credit: abCoffee
Indian coffee start-up abCoffee has raised $2m seed funding to accelerate outlet expansion and scale its product range.
Founded in 2022, abCoffee currently operates 12 small-format, take-away focused stores across Mumbai and Delhi NCR. The coffee chain, which also offers delivery via digital platforms Swiggy and Zomato, plans to reach 100 sites within the next 12 months.
“This investment will enable us to accelerate our growth and bring our unique coffee experience to more neighborhoods across India. We will keep the same momentum of growth in the coming 12 months, bringing abCoffee’s specialty coffees to India’s new neighbourhoods,” said CEO Abhijeet Anand.
The funding round was led by Tanglin Venture Partners and included investment from 100X.VC, Panthera Peak and OTP Venture Partners.
“As the first investors in abCoffee, we are delighted that they have been able to raise funds to fuel their rapid growth. In a burgeoning market, abCoffee has the perfect mix of the right product, strong team and proper positioning to propel them into becoming a leading coffee brand in India in the coming years,” said Ninad Karpe, Founder of 100X.VC.
abCoffee is the latest Indian coffee chain to receive investment to scale its store network as competition in India’s branded coffee shop market intensifies.
In January 2023, Blue Tokai Coffee Roasters raised $30m in Series B funding to increase its Indian store footprint and enhance its B2B presence. The coffee chain, which currently operates 80 outlets across India, received new funding from Ka Enterprises, the investment firm founded by Indian actress and entrepreneur Deepika Padukone, in September 2023.
Additionally, Third Wave Coffee recently raised $35m in a new private equity round, which valued the Bengaluru-based coffee chain at $150m. Third Wave Coffee, which currently operates 104 coffee shops across India, said the funding was a ‘monumental step’ in its goals to accelerate growth and invest in tech-enabled convenience.
Fellow domestic coffee chains Barista and Nothing Before Coffee are also implementing ambitious outlet growth drives as major international brands such Starbucks, Costa Coffee, Tim Hortons, Pret A Manger and Dunkin’ vie for market share.
