ab.Coffee Raises ₹61 Cr to Fuel Expansion Across India’s Coffee Market

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Mumbai-based grab-and-go coffee chain ab.Coffee has raised ₹61 crore in a pre-Series B round led by Kliff Ventures, the consumer retail fund launched by K Hospitality Corp. The round also saw participation from Hero Enterprise Partner Ventures, Merisis Venture Fund, and Stride Ventures. This fresh capital will be used to expand across Mumbai, Delhi-NCR, and Bengaluru, targeting dense office districts, residential clusters, and transit hubs where quick-service coffee options remain limited.

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India has traditionally been a tea-drinking country, but coffee consumption has steadily risen in urban centers over the past two decades. The organised coffee market is entering a new phase, shaped by repeat purchases and the demand for speed and convenience. ab.Coffee is positioning itself as a leader in this new category, offering compact store formats designed for takeaway orders and rapid service.

Founded in 2022 by Abhijeet Anand, an IIT Dhanbad alumnus who left a global energy career to launch the brand, ab.Coffee now operates 90+ outlets. Its model focuses on high-frequency consumption, meaning coffee as part of a daily routine rather than an occasional indulgence. This approach differentiates it from traditional cafés like Starbucks or Café Coffee Day, which rely on customers spending long periods inside stores.

The company has embraced technology to drive growth. It reported that 54% of takeaway orders are placed through its app, with subscriptions accounting for half of those. ab.Coffee pre-sells more than 40,000 beverages monthly, ensuring predictable revenue and strong customer retention. Subscription models, increasingly common in consumer tech, are helping ab.Coffee build loyalty and scale sustainably.

Financially, ab.Coffee has shown impressive momentum. Revenue doubled year-on-year in FY26, while store EBITDA grew by 193.2%. The company has also expanded its product line with matcha beverages and Procaff, a protein coffee range aimed at health-conscious consumers. Functional beverages are a rapidly growing segment globally, and ab.Coffee is tapping into this trend to diversify its offerings.

Looking ahead, ab.Coffee faces the challenge of sustaining profitability in a crowded market. Rising rents and delivery costs often pressure expansion-heavy consumer businesses. However, with disciplined execution, strong investor backing, and a clear focus on convenience-driven coffee culture, ab.Coffee is well-positioned to become a household name in India’s evolving beverage landscape.

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