Abcoffee Raises Rs.61 Crore in Funding Round by Kliff Ventures
Grab-and-go coffee company abcoffee has secured Rs 61 crore ($6.39 million) in a pre-Series B funding round spearheaded by Kliff Ventures. This round included contributions from Hero Enterprise Partner Ventures, Merisis Venture Fund, and Stride Ventures.
The organization announced that the new funds will be allocated to growth in both established and new markets, bolster supply chain and backend processes, improve technology infrastructure, and support subscriptions, customer interaction, and product development.
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Established in 2022 by Abhijeet Anand, abcoffee runs more than 90 locations in Mumbai, Delhi-NCR, and Bengaluru using small grab-and-go store designs.
The startup asserts that its revenue increased twofold in FY26, with store-level EBITDA surging 193.2 percent compared to the previous year. It also revealed that the repeat customer rate was 60 percent.
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The company claims that over 50 percent of its takeaway orders are now made through its app, and its subscription service currently pre-sells more than 40,000 drinks each month.
The company has broadened its product range to include matcha drinks and protein coffee options under its Procaff brand.
abcoffee competes with brands like Third Wave Coffee, Blue Tokai, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co., among others. In March 2024, the startup secured $3.4 million in its Series A funding round, which was led by Nexus Venture Partners, alongside contributions from current investor Tanglin Venture Partners.
ColdStar Logistics has formed a long-term alliance with abCoffee to oversee temperature-sensitive logistics and storage for the coffee chain in major Indian markets. The partnership will facilitate the transportation and storage of abCoffee’s drinks and ingredients throughout Mumbai, Delhi, Bengaluru, and Uttar Pradesh, emphasizing the preservation of product quality and adherence to delivery schedules across both online and offline platforms.
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According to the agreement, ColdStar will offer temperature-regulated and general warehousing in addition to comprehensive distribution assistance. The logistics company will implement its IoT-driven temperature monitoring solutions, predictive technology suite, and route optimization tools throughout the supply chain, encompassing storage, inventory control, and last-mile delivery. The collaboration focuses on maintaining uniformity in product quality while minimizing waste and inventory interruptions.
The logistics system will aid abCoffee’s increasing demand in several cities, with ColdStar managing the timely transport of ingredients and prepared beverages. The supply chain model aims to tackle issues associated with temperature management, inventory availability, and real-time visibility, all of which are vital for food and beverage brands operating on a large scale.
The collaboration further aids abCoffee’s growth initiatives by enhancing backend logistics throughout its outlet network. ColdStar’s storage and distribution network covers over 7,000 pin codes in more than 200 cities, ensuring reach in both metro and non-metro areas.
In line with its extensive distribution strategy, abCoffee has collaborated with Cityflo to provide drinks on specific bus routes in Mumbai. Orders made via the Cityflo app will be managed using ColdStar’s temperature-regulated supply chain, which includes preparation, transportation, and delivery to passengers on board.