Specialty coffee brand abCoffee raises $3.4M led by Nexus Venture Partners

Specialty coffee brand abCoffee has raised $3.4 million in a Series A funding round led by Nexus Venture Partners. Tanglin Venture Partners, an existing investor, also participated. 

The startup plans to use the raised capital to enhance its supply chain and technological advancements, with the ultimate goal of delivering on-demand coffee more efficiently and affordably.

The journey of abCoffee

Founded in 2022 by entrepreneur Abhijeet Anand, abCoffee has quickly made a name for itself in the competitive coffee market. With a remarkable customer loyalty rate of nearly 61%, the brand has established a strong foothold through its outlets, partnerships with platforms like Swiggy and Zomato, and its own website.

“We are thrilled to partner with Nexus Venture Partners and receive continued support from Tanglin Ventures in our mission to make specialty coffee accessible and enjoyable for everyone in India. We continue to remain extremely capital efficient, leverage supply chain optimisation and continue to innovate new products for the masses,” Abhijeet Anand, Founder & CEO of abCoffee, said.

Expansion and competition

abCoffee's growth trajectory includes the opening of 25 outlets across Mumbai and Delhi within just 20 months, with plans to expand to 150 stores by the end of 2024.

This rapid expansion places abCoffee in direct competition with other specialty coffee brands such as Third Wave Coffee, Blue Tokai, Rage Coffee, and major players like Tata and Nestle. Despite the stiff competition, abCoffee's unique value proposition and focus on quality and affordability have set it apart in the bustling Indian coffee market.

The market and future prospects

The Indian coffee market, which is valued at $0.5 billion in 2023, is expected to grow at a CAGR of 9.04% by 2028. abCoffee's recent funding and strategic initiatives position it well to capitalize on this growth. 

The brand's focus on leveraging technology and optimizing its supply chain to reduce costs and delivery times is a testament to its innovative approach to capturing a larger share of the market.

“abCoffee’s commitment to make specialty coffee accessible to the masses resonated strongly with us. Their innovative tech model, coupled with their focus on high-quality, ethically sourced beans and efficient brewing methods, allows them to offer premium coffee experiences at surprisingly affordable prices. We believe this unique approach has the potential to disrupt the Indian coffee market and make premium coffee beverages a mainstream beverage enjoyed by everyone.” Suvir Sujan, Managing Director at Nexus Venture Partners, said.