Founded in 2022 by IIT Dhanbad alumni Abhijeet Anand, the firm claims to have a client loyalty rate of over 61 percent. The money will be used to accelerate supply chain and technological innovation, aiming to provide on-demand coffee at a cheaper cost and in less time. Coffee sells its products via its stores, platforms such as Swiggy and Zomato, and its website.
Specialty coffee firm abCoffee has raised $3.4 million in a Series A fundraising round led by Nexus Venture Partners, with participation from previous investor Tanglin Venture Partners.
The new funding will help abCoffee expand its supply chain and digital innovation, with the goal of providing on-demand coffee at a lower cost and in less time, according to a statement.
According to Inc42, Abhijeet Anand founded the firm in 2022, and it claims a client loyalty rate of approximately 61%. It sells its products through physical stores, online platforms such as Swiggy and Zomato, and its website.
“We continue to remain extremely capital efficient, leverage supply chain optimization, and continue to innovate new products for the masses,” he said, according to Inc42.
The latest fundraising comes just a few months after it received a $2 million seed investment from Tanglin, 100X.VC, Panthera Peak, OTP Venture Partners, and other angel investors in September last year.
Back then, the firm stated that it would use the new money to develop its IT stack, increase its product line, and make its products more available across India via its retail grab-and-go stores.
It stated that it has 12 locations in Mumbai and Delhi, NCR. It was also included in Inc42’s 38th edition of ’30 Startups to Watch’.
It competes with startups such as Sweet Karam Coffee, Blue Tokai Coffee Roasters, Rage Coffee, and Third Wave Coffee Roasters. It also competes with significant players such as Tata and Nestle, among others.
Among its competitors, Rage announced total brand sales of INR 100 crore in December 2023.
Sweet Karam Coffee also received $1.5 million in funding from Fireside Ventures in October of last year to expand offline, explore new territories, and develop its regionalized product selection.
According to a Statista analysis, the Indian coffee market was valued at $0.5 billion in 2023 and is predicted to rise at a 9.04% CAGR through 2028.
