abCoffee, the specialty coffee chain, has successfully secured $2 million in seed funding through a round led by Tanglin Venture Partners. Notable participation in this funding round also came from 100X.VC, Panthera Peak, OTP Venture Partners, and various angel investors.
In an official statement, the Mumbai-based startup announced its intention to utilize the newly acquired funds for enhancing its technological infrastructure, broadening its product offerings, and enhancing accessibility to its products throughout India via its network of retail grab-and-go outlets.
Established in 2022 by Abhijeet Anand, abCoffee was created with the mission of increasing the accessibility of specialty coffee within India. The company provides an extensive range of freshly brewed coffee selections, all meticulously sourced from Chikmagalur.
Currently, the startup maintains a presence with 12 outlets in both Mumbai and the Delhi-NCR region.
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 distributes its products through its physical outlets, as well as on popular platforms such as Swiggy and Zomato, in addition to its official website. The company faces competition from other startups in the coffee industry, including names like Blue Tokai Coffee Roasters, Rage Coffee, and Third Wave Coffee Roasters.
Within the larger coffee market landscape, it goes head-to-head in competition with FMCG giants such as Nestle and Hindustan Unilever.
Earlier this month, Blue Tokai secured an undisclosed amount of funding from the investment entity Ka Enterprises, associated with actor Deepika Padukone, as part of its ongoing Series B funding round. This funding round comes on the heels of the coffee startup’s initial Series B investment of $30 million back in January of this year.
Read More: Bollywood star Deepika Padukone invests in specialty coffee brand Blue Tokai
As per research conducted by Statista, the Indian coffee market had an estimated worth of $0.5 billion in 2023, with a projected Compound Annual Growth Rate (CAGR) of 9.04% expected to propel it to further expansion by 2028.