Coffee Startup Plans Expansion Across Indian Cities
Grab-and-go coffee chain abcoffee has raised Rs 61 crore (approximately $6.39 million) in a pre-Series B funding round led by Kliff Ventures.
The round also witnessed participation from Hero Enterprise Partner Ventures, Merisis Venture Fund and Stride Ventures.
The latest investment comes as India’s organised coffee retail and quick-service beverage market continues witnessing strong growth driven by rising urban consumption, app-based ordering and increasing demand for premium yet affordable coffee experiences.
Funds To Support Expansion And Technology Investments
According to the company, the fresh capital will be deployed towards expanding across existing and new markets while strengthening backend operations, supply chain infrastructure and technology capabilities.
abcoffee also plans to invest aggressively in customer engagement, subscription-based offerings and product innovation as it scales operations across India’s growing coffee consumption market.
Founded in 2022 by Abhijeet Anand, the startup currently operates more than 90 outlets across Mumbai, Delhi-NCR and Bengaluru through compact grab-and-go store formats designed for speed, convenience and affordability.
The company has positioned itself as a tech-enabled coffee retail brand focused on high-frequency consumption and digitally driven customer experiences.
Revenue Growth And Profitability Improve Sharply
abcoffee said its revenue doubled during FY26 while store-level EBITDA increased by 193.2% year-on-year, reflecting improving operational efficiency and stronger customer retention.
The startup also reported a repeat customer rate of approximately 60%, indicating growing brand loyalty in a highly competitive coffee retail market.
According to the company, more than half of its takeaway orders are now placed directly through its mobile application, highlighting the increasing role of digital platforms in driving customer engagement and order frequency.
Its subscription platform currently pre-sells over 40,000 beverages every month, providing the startup with recurring demand visibility and stronger customer stickiness.
Industry analysts believe subscription-led consumption models are increasingly becoming a key differentiator for food and beverage startups seeking predictable revenue streams and lower customer acquisition costs.
Startup Expands Product Portfolio
Alongside store expansion, abcoffee has also broadened its product portfolio with the introduction of matcha-based beverages and protein coffee offerings under its Procaff brand.
The company aims to tap into rising consumer interest around functional beverages, health-focused products and premium café experiences among younger urban consumers.
India’s coffee market has evolved rapidly over the past few years as consumers increasingly shift towards specialty coffee, convenience-led formats and digitally integrated ordering experiences.
Competition Intensifies In India’s Coffee Startup Ecosystem
abcoffee operates in an increasingly crowded and competitive coffee startup ecosystem.
The company competes with brands including Third Wave Coffee, Blue Tokai Coffee Roasters, Rage Coffee, Slay Coffee, Sleepy Owl and Seven Beans Co. among others.
In March 2024, abcoffee had raised $3.4 million in its Series A funding round led by Nexus Venture Partners with participation from Tanglin Venture Partners.
The latest funding is expected to strengthen the company’s expansion ambitions as competition intensifies across India’s rapidly growing café and beverage-tech market.
