Nothing Before Coffee (NBC), a rapidly growing QSR (Quick Service Restaurant) coffee chain in India, has successfully raised $2.3 million in a pre-Series A funding round. Led by Prath Ventures, with participation from SYL Investments, this funding marks a pivotal milestone in NBC’s journey to expand its presence across the country. The startup, founded in 2017, has established a strong foothold in Tier-II and Tier-III cities, areas that are typically underrepresented in the premium coffee space. With 85+ outlets already operational, NBC plans to use this funding to open over 150 new stores over the next 12 months, strengthen its digital platforms, optimize its supply chain, and invest in talent acquisition. In addition to providing high-quality, affordable coffee, NBC is disrupting the traditional café market by creating India-centric innovations like the “Shrappe,” a desi twist on the frappe, making it an attractive option for young consumers across the country.
1. Introduction: Nothing Before Coffee’s Unique Journey and Vision
1.1 Overview of Nothing Before Coffee
Nothing Before Coffee (NBC) has taken the Indian café industry by storm since its inception in 2017. Founded by Ankesh Jain, Anand Jain, Akshay Kedia, and Shubham Bhandari in Jaipur, NBC quickly grew from a humble café into a national brand. Today, the company boasts 85+ outlets across India and has established itself as a disruptive force in India’s coffee industry, particularly in Tier-II and Tier-III cities.
1.2 The Company’s Vision and Target Market
NBC’s vision is simple yet impactful: to provide high-quality coffee at affordable prices, creating spaces where young consumers can gather, relax, and engage with their communities. While many premium coffee chains target the affluent consumers in Tier-I cities, NBC’s unique approach focuses on accessibility in underrepresented cities and towns. This gives it a competitive edge and positions the brand to capture an untapped market.
2. The Funding Round and Its Significance
2.1 The $2.3 Million Pre-Series A Funding
Nothing Before Coffee recently raised $2.3 million in a pre-Series A funding round, led by Prath Ventures, with additional participation from SYL Investments. This funding is crucial for NBC as it gears up for the next phase of its expansion. The capital will help the brand achieve its ambitious growth targets, including the opening of 150+ new stores within the next 12 months.
2.2 The Role of Prath Ventures and SYL Investments
Prath Ventures, a venture capital firm with a focus on early-stage startups, has long believed in the potential of the coffee market in India, particularly in cities outside the metro hubs. The firm’s founder, Piyush Goenka, expressed confidence in NBC’s model, highlighting the vibrancy of their cafés, the affordability of their offerings, and their ability to cater to the unique preferences of Indian consumers.
2.3 Key Factors Behind the Successful Fundraise
NBC’s success in securing this funding can be attributed to several factors:
- The growing demand for café experiences beyond metro cities.
- NBC’s ability to create a unique, community-focused café culture.
- The company’s strong operational model and impressive unit economics.
- The passionate leadership team that has effectively executed its vision to date.
3. NBC’s Revenue Model and Market Approach
3.1 Affordable Coffee with India-Centric Innovation
NBC’s business model revolves around making high-quality coffee accessible to a broader segment of consumers, particularly in Tier-II and Tier-III cities. Their menu includes a variety of coffee options, alongside India-centric innovations like the “Shrappe,” a desi take on the classic frappe. These offerings set NBC apart from traditional coffee chains, which typically focus on Western-style drinks.
3.2 Creating Vibrant Spaces for Young Consumers
NBC isn’t just about serving coffee; it’s about creating experiences. The brand has carefully curated its stores to resonate with the youth of India, offering vibrant and inviting spaces for people to connect, work, or relax. This unique focus on the café experience as a community hub appeals to a demographic that values more than just the product—it’s about the atmosphere, too.
3.3 Technology and Digital Integration
As part of its growth strategy, NBC is also investing in enhancing its digital platforms, making it easier for customers to engage with the brand through online ordering, loyalty programs, and other tech-driven solutions. This will help NBC improve customer retention, streamline operations, and maintain its competitive advantage as it expands.
4. The Road Ahead: 150+ Stores and More
4.1 Expanding to 150+ Stores
With the recent funding in place, NBC is now setting its sights on rapidly expanding its footprint. As a result, the company plans to open over 150 new stores within the next 12 months, aiming to bring its unique coffee experience to an even wider audience. Ultimately, this ambitious growth marks a significant step toward NBC’s mission of becoming the most loved and accessible coffee chain in India.
4.2 Optimizing Supply Chains and Enhancing Talent
In addition to expanding its store network, NBC is also focused on strengthening its supply chain and acquiring top talent to support its scaling efforts. This will ensure that the company can maintain high product quality and service standards as it grows.
4.3 Innovative Store Formats
NBC is experimenting with new store formats to appeal to a diverse range of customers. Whether it’s smaller, more intimate settings or larger flagship locations, the brand is focused on creating spaces that resonate with the local community and encourage customer engagement.
5. The Founders Behind Nothing Before Coffee
5.1 Ankesh Jain
Ankesh Jain, one of the co-founders of NBC, brings a wealth of experience in building consumer-focused businesses. His vision for NBC was to offer something more than just coffee—to create a brand that resonates deeply with the Indian youth and provides them with a space that feels like home.
5.2 Anand Jain, Akshay Kedia, and Shubham Bhandari
The other co-founders, Anand Jain, Akshay Kedia, and Shubham Bhandari, each bring valuable expertise in different areas, from operations to marketing and business strategy. Together, they have built a company that stands out not just for its coffee but for its strong brand identity and innovative approach.
6. The Indian Coffee Industry: A Growing Market
6.1 Rising Demand for Coffee in India
India’s coffee culture is evolving rapidly, thanks to changing consumer preferences, the growing café culture, and a rising demand for quality coffee. Moreover, this shift is largely fueled by younger generations who increasingly seek premium yet affordable coffee experiences.
6.2 Opportunities Beyond Tier-I Cities
While large coffee chains focus on major metro cities, there is a significant opportunity in smaller towns and cities. NBC’s decision to target Tier-II and Tier-III cities places it in a unique position to tap into this growing market, where demand for quality coffee has historically been underserved.
7. Learning for Startups and Entrepreneurs
7.1 Expanding Beyond Metro Hubs
The success of Nothing Before Coffee shows that there are abundant opportunities in smaller cities and towns. For startups looking to scale, it’s crucial to identify untapped markets and create products or services that resonate with local tastes and preferences. For instance, NBC’s “Shrappe” demonstrates the importance of innovation that caters to the local culture.
7.2 Building a Strong Brand Identity
NBC has successfully built a brand that is not only about coffee but also about community and experience. Startups should focus on creating a strong brand identity that reflects their core values and connects with their target audience on a deeper level.
7.3 Leveraging Technology for Growth
As seen with NBC, investing in technology and digital platforms can provide startups with a significant competitive edge. Whether it’s through online ordering systems or loyalty programs, startups should explore how they can use technology to enhance customer experience and streamline operations.
Conclusion: Nothing Before Coffee’s Bright Future
Nothing Before Coffee’s rise is a testament to the power of combining affordability, quality, and innovation. With its recent funding and ambitious expansion plans, NBC is well on its way to becoming one of India’s most loved coffee chains, with a focus on accessibility and community. As the company prepares to open 150+ new stores, it is poised to continue its journey toward reshaping India’s café culture especially in cities that have long been overlooked by premium coffee brands. This story is one of inspiration for startups, showing that with the right vision and model, significant growth is achievable even in a competitive market.
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