Third Wave Coffee Secures Significant Funding for Expansion
Third Wave Coffee, a coffee chain based in Bengaluru, has successfully raised Rs 408 crore (43 million) in a funding round led by its existing investor, WestBridge Capital, with the majority of the funds sourced through a primary issuance. Additional participation came from the existing investor Creaegis along with various angel investors. The latest funding will aid in expanding operations in present markets, enhancing presence in high-growth cities, and accelerating the Third Rush Desserts segment, as indicated in a press release from the company.
Funding Round Details
A Mint report reveals that this funding round values Third Wave Coffee at approximately Rs 2,000 crore ($210 million), a significant increase from Rs 1,200 crore (150 million) during the prior funding round. The company has plans to enter nine additional cities in the near future, including Ludhiana, Jalandhar, Amritsar, and Lucknow, while also focusing on strengthening its footprint in tier II and tier III cities.
About Third Wave Coffee
Founded in 2017 by Sushant Goel, Ayush Bathwal, and Anirudh Sharma, Third Wave Coffee runs cafes and offers products such as coffee beans and cold brew bags. The company has established its presence in various cities including Bengaluru, Delhi, Pune, Mumbai, and Hyderabad.
Investment History
WestBridge has been an investor since Third Wave Coffee’s Series A round, leading the company’s $21 million Series B round in 2022, while Creaegis directed its $35 million Series C round in 2023. With the latest funding, the total investment into Third Wave Coffee surpasses $105 million.
Recent Developments
Shortly after the 2023 funding round, Third Wave Coffee made the decision to lay off approximately 100 employees. Concurrently, Sushant Goel, the co-founder and then-CEO, transitioned from his role as CEO to a position on the company’s board. Rajat Luthra, formerly the CEO of KFC India and Nepal, was appointed to fill his previous role.
Financial Overview
In FY25, Third Wave Coffee reported an operating revenue of Rs 285 crore, while its net loss decreased to Rs 94 crore. The company has not yet submitted its FY26 financial results.