Mumbai-based grab-and-go coffee chain abcoffee has raised Rs 61 crore in a pre-Series B round led by Kliff Ventures, the consumer retail fund launched by K Hospitality Corp.
The funding round also saw participation from Hero Enterprise Partner Ventures, Merisis Venture Fund, and Stride Ventures.
abcoffee plans to use the capital to expand across Mumbai, Delhi-NCR, and Bengaluru. The coffee chain is targeting dense office districts, residential clusters, and transit hubs where quick-service coffee options are limited.
India has traditionally been a tea-drinking country, but coffee consumption has steadily risen over the past two decades, particularly in urban centres. The organised coffee market in the country is entering a new phase of consumption, shaped by repeat purchases and the need for speed and convenience.
Estimates from the Coffee Board of India and international market research show growing demand for coffee among younger consumers, driven by rising disposable incomes, exposure to the global café culture, and the growth of app-based food services.
Large chains such as Café Coffee Day and Starbucks helped popularise the café culture in India in the earlier years. Now a newer generation of companies is attempting to build businesses around faster service and lower prices.
abcoffee is positioning itself within the new category. Founded in 2022 by Abhijeet Anand, the company operates more than 90 outlets using compact store formats designed for takeaway orders and rapid service.
Karan Kapur, Executive Director at K Hospitality Corp and Kliff Ventures, said the firm viewed abcoffee as a potential leader in India's growing coffee category and praised its "disciplined execution" and customer loyalty.
abcoffee's model differs from traditional cafés that depend heavily on customers spending long periods of time inside stores. Instead, the focus is on what the industry calls 'high-frequency consumption', meaning products bought regularly as part of a daily routine rather than occasional indulgences.
The company said 54% of its takeaway orders are now placed through its app; subscriptions account for half of all app orders. It also claimed to pre-sell more than 40,000 beverages each month for future consumption.
Subscription models, which allow customers to pay in advance for repeat consumption, are now increasingly common in the consumer technology businesses because they can improve predictability of revenue and encourage customer retention.
The company said its revenue doubled year on year in FY26 and store EBITDA grew by 193.2%.
Founder Anand noted that coffee in India is evolving from "an occasional café experience to an everyday habit".
The startup's recent launches include matcha beverages and Procaff, a protein coffee range aimed at health-conscious consumers. Functional beverages-products marketed as offering additional health or nutritional benefits-are a rapidly expanding segment globally.
The broader challenge for India's coffee startups will be to sustain profitability in an increasingly crowded and competitive market. Expansion-heavy consumer businesses often face pressure from rising rents and delivery costs.
Edited by Swetha Kannan