abCoffee, a tech-enabled coffee company, announced the closing of its Series A funding round, securing $3.4 million. The round was led by Nexus Venture Partners, with participation from existing investor Tanglin Venture Partners.
The funds raised will enable abCoffee to accelerate its supply chain and technology stack to bring on-demand coffee.
Speaking about the partnership, Abhijeet Anand, Founder and CEO of abCoffee, said, “We continue to remain extremely capital efficient, leverage supply chain optimisation and continue to innovate new products for the masses.”
“abCoffee's commitment to making specialty coffee accessible to the masses resonated strongly with us. 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.
In India, coffee consumption is significant. A Bloomberg report says that consumption is supposed to increase by 10 to 15 per cent every year.
Within this sector is the rising demand for coffee beverages, where consumers seek unique, high-quality experiences and diverse flavor profiles. abCoffee is uniquely positioned to capitalise on this demand by offering premium specialty coffee through its convenient, efficient, and innovative grab-and-go outlets, as per the company statement.
Several companies are also expanding their footprints in the country, such as the Allana Group, an exporter of coffee that entered the market in 2022. Within India, some companies, such as Tata Consumer Products, are expanding. Tata Consumer Products aims to expand its business in non-Southern Indian parts as well. Then there are other international giants, such as Starbucks, that have decided to increase their outlets in India by 2028.
