Specialty coffee chain abCoffee has raised $2 Mn in a seed funding round led by Tanglin Venture Partners. The funding round also saw participation from 100X.VC, Panthera Peak,OTP Venture Partners and other angel investors.
In a statement, the Mumbai-based startup said it will 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.
abCoffee was founded in 2022 by Abhijeet Anand to make specialty coffee more accessible in India. It offers a wide variety of freshly brewed coffees, sourced from Chikmagalur.
The startup currently has 12 outlets in Mumbai and Delhi NCR. It also featured in Inc42’s 38th edition of ‘30 Startups To Watch’ .
Commenting on the funding, founder and CEO Anand said, “This investment will enable us to accelerate our growth and bring our unique coffee experience to more neighbourhoods across India. In the coming, 8-12 months, we keep the same momentum of growth; ensuring people are at heart of everything and bring the abCoffee’s specialty coffees to India’s new neighbourhoods.”
abCoffee sells its products through its outlets, platforms like Swiggy and Zomato, and its website. It competes with startups like Blue Tokai Coffee Roasters, Rage Coffee and Third Wave Coffee Roasters.
In the broader coffee market, it competes directly with FMCG majors like Nestle and Hindustan Unilever.
Earlier this month, Blue Tokai raised an undisclosed amount of funding from actor Deepika Padukone’s investment entity Ka Enterprises as a part of its Series B funding round. This round followed the coffee startup’s Series B funding of $30 Mn in January this year.
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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