abCoffee Nets $3.4 Mn To Boost Supply Chain, Tech Stack

Specialty coffee brand abCoffee has raised $3.4 Mn as a part of its Series A funding round led by Nexus Venture Partners, with participation from existing investor Tanglin Venture Partners.

The fresh capital will support abCoffee’s supply chain and tech innovation growth, aimed at offering on-demand coffee at lower price and lesser time, it said in a statement.

Founded in 2022 by Abhijeet Anand, the brand claims to have a customer loyalty rate of nearly 61%. It sells products through its outlets, platforms like Swiggy and Zomato, and its website. 

“We continue to remain extremely capital efficient, leverage supply chain optimisation and continue to innovate new products for the masses,” Anand said. 

The latest funding comes a few months after it secured a $2 Mn seed funding from Tanglin,100X.VC, Panthera Peak, OTP Venture Partners and other angel investors in September last year.

Back then, the brand said that it would use the fresh funds to improve its tech stack, expand the product range, and make the products more accessible across India through its retail grab-and-go outlets.

It said that it has 12 outlets in Mumbai and Delhi NCR. It also featured in Inc42’s 38th edition of ‘30 Startups To Watch’ .

It competes against startups like Sweet Karam Coffee, Blue Tokai Coffee Roasters, Rage Coffee and Third Wave Coffee Roasters. It also competes against major players including Tata and Nestle, among others.

Among its competitors, Rage reported to have crossed INR 100 Cr in cumulative brand sales in December 2023. 

Also, in October last year, Sweet Karam Coffee secured $1.5 Mn from Fireside Ventures for  offline expansion, to enter new geographies, and to strengthen its regionalised product portfolio. 

According to a study conducted by Statista, the Indian coffee market was valued at $0.5 Bn in 2023 and is expected to grow at 9.04% CAGR by 2028. 

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