abCoffee raised ₹61 Cr from Kliff Ventures. Total funding crosses $11 Mn. Store-level EBITDA jumped 193% in FY26. 60% repeat rate and subscription pre-sells 40,000 cups monthly.
Alpha Score of 45 reflects weak overall profile with moderate momentum, weak value, weak quality, moderate sentiment.
Specialty coffee chain abCoffee raised ₹61 Cr ($6.4 Mn) in a Pre-Series B round led by Kliff Ventures with participation from Hero Enterprise Partner Ventures, Merisis Venture Fund and Stride Ventures. The round brings total funding past $11 Mn, including the earlier $3.4 Mn Series A from Nexus Venture Partners.
The simple read: a startup raised capital to open more stores. The better market read: abCoffee is using this round to scale a grab-and-go model that already generates 60% repeat purchase rates and a 193.2% store-level EBITDA jump in FY26, in a country where specialty coffee consumption is still in its early innings. The funding will test whether unit economics hold as the chain grows beyond its current 90 outlets across Mumbai, Delhi NCR and Bengaluru.
Kliff Ventures led the round. Hero Enterprise Partner Ventures, Merisis Venture Fund and Stride Ventures joined as co-investors. The mix of venture capital and corporate venture suggests both financial and strategic interest in the coffee chain space. A portion of the fresh capital will fund expansion across existing and new markets in Mumbai, Delhi NCR and Bengaluru.
With this round, abCoffee has raised a total of $11 Mn since its 2022 founding by Abhijeet Anand. The startup previously secured a $3.4 Mn Series A from Nexus Venture Partners. The cumulative capital places abCoffee among better-funded specialty coffee startups in India, competing with First Coffee, Sleepy Owl, Blue Tokai and Nothing Before Coffee.
About 54% of takeaway orders are placed through the abCoffee app. The digital subscription ecosystem contributes nearly half of all app orders and pre-sells more than 40,000 cups every month. The subscription model locks in recurring revenue and reduces customer acquisition cost over time.
The startup launched abCircle, a rewards platform designed to increase customer engagement and repeat orders. It also introduced new flavours: Matcha and Procaff, a protein coffee lineup aimed at tapping into growing demand for wellness and functional beverages. The product expansion targets a demographic shift toward functional drinks, a segment that could differentiate abCoffee from traditional coffee chains.
Key insight: abCoffee's 60% repeat purchase rate and subscription pre-selling 40,000 cups monthly indicate strong unit economics for a grab-and-go model that competes on speed and price, not just ambiance.
abCoffee claims its revenue doubled year-on-year in FY26, while store-level EBITDA surged 193.2%. The metric matters more than top-line growth for a chain scaling offline: it suggests each new outlet is not diluting margins. The company did not disclose absolute margin percentages, the rate of improvement is the key signal for investors tracking offline retail unit economics.
Store-level EBITDA growth of 193% implies either rapid same-store sales leverage or a mix shift toward higher-margin products like subscriptions and protein coffee. The grab-and-go model keeps real estate costs lower than full-service cafes, giving abCoffee operating leverage as it opens more outlets. The FY26 data suggests the model works at 90 outlets. The next test is whether it works at 200.
The funding comes as India enters its third wave of coffee consumption, marked by the rise of specialty and craft coffee. D2C brands such as abCoffee, Sleepy Owl and Country Bean have led by popularising single-estate and single-origin beans roasted in small batches. India's ready-to-drink coffee market, spanning instant coffee, roasted-and-ground beans, cold brew and nitro coffee, is projected to reach $20 Bn by 2030.
The round participants include Stride Ventures, a debt fund that specialises in venture debt for Indian startups. Its involvement suggests abCoffee may have secured a debt component alongside equity, stretching the capital further for store buildouts. Hero Enterprise Partner Ventures brings corporate experience in retail expansion, which could help abCoffee navigate real estate and supply chain challenges.
The Pre-Series B gives abCoffee runway to test whether its unit economics hold at larger scale. The FY26 margin data suggests the model works at 90 outlets. The next test is whether it works at 200. Investors will watch the same metrics: subscription penetration, repeat rate and store-level margin trajectory.
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