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, marking another significant milestone in the company’s growth journey.
The funding round also attracted participation from Hero Enterprise Partner Ventures, Merisis Venture Fund, and Stride Ventures. The fresh capital is expected to support the company’s plans to strengthen its presence in existing markets while expanding into new locations across India.
Fueling the Next Phase of Growth
abcoffee said it will use the newly raised funds to scale its operations and improve core business functions. The company plans to invest in expanding its store network, strengthening supply chain capabilities, and enhancing backend operations.
In addition, the startup intends to upgrade its technology infrastructure and deepen customer engagement initiatives. The funding will also support investments in subscription-based offerings and product innovation as the brand looks to build stronger customer loyalty and improve user experience.
Building a Presence Through Compact Store Formats
Founded in 2022 by Abhijeet Anand, abcoffee has rapidly expanded its footprint in India’s competitive coffee market. The company currently operates more than 90 outlets across Mumbai, Delhi-NCR, and Bengaluru.
Unlike traditional café chains that rely on larger dine-in spaces, abcoffee focuses on compact grab-and-go formats designed to serve customers quickly and efficiently. This model has enabled the company to expand across high-footfall urban locations while maintaining operational efficiency.
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Strong Business Performance Drives Momentum
The company reported significant business growth during FY26, highlighting strong consumer demand and increasing operational efficiency.
According to abcoffee, its revenue doubled during the fiscal year, while store-level EBITDA increased by 193.2 percent compared to the previous year. The startup also reported a repeat customer rate of 60 percent, indicating a growing base of loyal consumers.
The figures reflect the company’s efforts to build a sustainable coffee business by combining convenience-focused retail formats with technology-enabled customer engagement.
Digital Adoption Becomes a Key Growth Driver
Technology has emerged as an important component of abcoffee’s growth strategy. The company stated that more than half of its takeaway orders are now placed through its mobile application.
Its subscription platform has also gained traction among customers. According to the startup, the service currently pre-sells more than 40,000 beverages every month, providing a recurring revenue stream and helping strengthen customer retention.
The increasing use of digital ordering and subscription services highlights changing consumer preferences, particularly among urban customers seeking convenience and faster service.
Expanding Beyond Traditional Coffee Offerings
As part of its product development efforts, abcoffee has broadened its menu beyond conventional coffee beverages. The company has introduced matcha-based drinks and protein coffee products under its Procaff brand.
The move reflects a growing focus on health-conscious and functional beverage categories, which have been gaining popularity among consumers looking for alternatives to traditional coffee offerings.
Product diversification is expected to play an important role in helping the company attract new customer segments while increasing engagement with existing users.
Competing in India’s Fast-Growing Coffee Market
abcoffee operates in an increasingly competitive coffee sector alongside brands such as Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co..
The latest funding round comes as coffee startups across India continue to invest in store expansion, digital platforms, and product innovation to capture a larger share of the growing coffee consumption market.
Continuing Investor Confidence
The pre-Series B investment follows abcoffee’s earlier fundraising efforts. In March 2024, the startup raised $3.4 million in a Series A round led by Nexus Venture Partners, with participation from existing investor Tanglin Venture Partners.
With fresh capital in hand and an expanding customer base, abcoffee is positioning itself for its next stage of growth as it scales operations, strengthens technology capabilities, and expands its reach across India’s urban coffee market.
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