India’s value-focused coffee shops firmly in the sights of investors

Can affordable, small-format operators supercharge India’s branded coffee shop market by encouraging mass daily coffee consumption in the world’s most populous country? Many investors are putting their money where their mocha is

India’s coffee shop market is undoubtedly booming. But in a vast country still more accustomed to cheap chai on the go, affordable coffee operators are doing much of the heavy lifting to convert India into a nation of everyday coffee drinkers.

Mumbai-based abCoffee has led the charge for value-focused brands, opening more than 80 stores and raising nearly $5m to support expansion since launching in 2022. Alongside showcasing its highly scalable business model, abCoffee has also highlighted the strong returns potentially awaiting investors who back low-cost, small-format operators.

“If coffee doesn’t become a habit, you will not have enough consumption in a market like India. Hence, you have to get more cups of coffee in the hands of more people,” abcoffee CEO and founder, Abhijeet Anand, told World Coffee Portal in November 2025, highlighting the challenge, but also the opportunity, for low-cost coffee operators in India.