CEO Abhijeet Anand (second left) with abCoffee staff at the Marathon Futurex site | Photo credit: abCoffee

Indian specialty coffee chain abCoffee has outlined ambitious plans to double its store count within the next two months. 
 

Founded in 2022, the coffee chain has credited a focus on affordability and small-format stores as enabling rapid expansion across Mumbai and Delhi NCR, reaching 25 stores since launching in 2022. 

The Tanglin Venture Partners-backed business has opened seven new stores so far in 2024 – the latest of which opened at the Marathon Futurex commercial centre in Mumbai this month. 

In a press release, abCoffee said it has a further 25 outlets in the pipeline and expects to reach 50 outlets by April 2024 and 150 stores by the end of the year.  

The value-focused coffee chain will focus outlet growth on high footfall corporate estates and high streets across Mumbai and Delhi NCR. abCoffee will also prioritise customer retention to build on its ‘industry-leading’ 61% customer loyalty rate. 

“We are thrilled to achieve this significant milestone. This rapid expansion underscores our unwavering commitment to delivering exceptional coffee experiences at honest prices, coupled with a dedication to building strong community connections. We are proud of truly creating a coffee brand by Indians, for Indians and from India,” said Abhijeet Anand, Founder and CEO, abCoffee. 

In October 2023, abCoffee raised $2m in seed funding to accelerate outlet expansion and scale its value-focused menu. The funding round was led by Tanglin Venture Partners and included investments from 100X.VC, Panthera Peak and OTP Venture Partners.  

While many international branded coffee chains have entered the Indian market seeking to cater to the country’s growing affluent middle-class demographic, their beverage pricing – often on par with their respective European and North American stores – remains unaffordable for many domestic consumers. 

Local coffee sourcing, streamlined business models and small footprint stores have enabled value-focused operators like abCoffee and Jaipur-based Nothing Before Coffee to offer significantly lower prices in India. The coffee chains charge INR 101 ($1.22) and INR 126 ($1.52) respectively for a standard latte – compared to INR 288 ($3.47) for a comparable beverage at Starbucks and INR 230 ($2.77) at Costa Coffee.