abCoffee, a specialty coffee quick-service restaurant chain, has secured $3.4 million in its Series A funding round, spearheaded by Nexus Venture Partners, with participation from its current investor, Tanglin Venture Partners.
Prior to this round, the startup had secured $2 million in its seed round, with Tanglin Venture leading the investment in September last year.
Continue Exploring: abCoffee secures $2 Million in seed funding to fuel growth in India’s specialty coffee market
The newly acquired funding will be utilized by abCoffee to enhance its supply chain and technology infrastructure, facilitating the delivery of on-demand coffee beverages at reduced prices and faster turnaround times.
Established in 2022 by Abhijeet Anand, abCoffee offers a diverse range of freshly brewed coffees at budget-friendly rates, encompassing traditional blends such as Americano, Latte, Flat White, Iced Latte, and Irish Cold Coffee.
Speaking on the funding, Abhijeet Anand, Founder, and CEO of abCoffee, said, “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 optimization and continue to innovate new products for the masses.”
“abCoffee’s commitment to making specialty coffee accessible to the masses resonated strongly with us. Their innovative tech model and focus on high-quality, ethically sourced beans and efficient brewing methods allow 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,” said Suvir Sujan, Managing Director at Nexus Venture Partners.
Ravi Venkatesh, Managing Partner at Tanglin Venture Partners added, “Over the past year, we’ve been privileged to witness how abCoffee has scaled and are excited to double-down in this funding round also.”
With a customer loyalty rate of 61%, which is nearly double the industry average, the company underscores its dedication to exceptional service, boasting a remarkable turnaround time (TAT) of 1.5 minutes.
In a span of 20 months, the brand has recently launched 25 outlets across Mumbai and Delhi. With ambitions set high, the brand aims to reach 150 stores by the end of 2024.
Continue Exploring: abCoffee expands rapidly: 25 outlets opened in 20 months, aims for 150 by 2024
It competes with Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, Seven Beans Co., and numerous others.
The global coffee market remains significant, with the Indian coffee market projected to reach $2.30 billion by 2030 at a compound annual growth rate (CAGR) of 12.5 percent. Notably, the trend within this sector indicates a rising demand for unique, high-quality coffee experiences and diverse flavor profiles, a demand that abCoffee aims to capitalize on by offering premium specialty coffee through its convenient, efficient, and innovative grab-and-go outlets.