Bengaluru-based café chain Third Wave Coffee has raised $43 million in a funding round led by existing investor Westbridge Capital, with participation from Creaegis and other angel investors. According to reports from Business Standard, the transaction was largely through a primary issuance, with a small secondary component involving exit of some early investors. Sandeep Singhal, co-founder & managing partner at Westbridge Capital, confirmed that most of the capital was primary, with the secondary component involving a small percentage of share purchase from earlier founders who are not actively involved in the business. Following the investment, Westbridge's ownership is expected to rise to about 47%, while Creaegis will hold close to 15%, with founders and other investors owning the balance. The latest funding round brings the company's total funding to $105 million since its inception.
The new funding will fuel Third Wave Coffee's next phase of expansion, targeting 320 stores over the next few years, with an immediate objective to reach 320 outlets by the end of FY27. As reported by Business Standard, the company currently operates about 240 outlets and has been adding roughly 100 stores annually. In the next few months, the company plans to grow its retail channels by foraying into nine new cities, including Ludhiana, Jalandhar, Amritsar and Lucknow. Over the past year, Third Wave has opened stores in Ahmedabad and Kolkata, with plans to deepen presence in tier-II and tier-III cities, including Guwahati, Ranchi, Patna and Bhubaneswar. The company is also studying opportunities in eastern India and expects its network to cross 400 stores over a longer period. "This fundraise will help us accelerate our expansion across the country while strengthening new categories, with desserts being an important part of the journey. Our vision to add 100 new cafes every year reflects the significant opportunity we see ahead," said Rajat Luthra, CEO of Third Wave Coffee.
The latest funding values the company at approximately ₹2,000 crore, representing significant growth from its previous valuation. According to Business Standard, in financial year 2024-25, Third Wave's operating revenue was ₹285 crore, while the company's net loss narrowed to ₹94 crore. The company last raised about $35 million in 2023 at a valuation of ₹1,300 crore. Third Wave's revenues grew by 30% to about ₹337 crore in FY26, though the company is yet to file audited results. Heisetasse Beverages Pvt. Ltd, which operates Third Wave Coffee, reported revenue from operations of ₹268.6 crore in FY25, compared with ₹241.3 crore a year earlier. The fresh capital comes as the company continues to invest in physical expansion while working to improve the economics of its operations.
About three months ago, Third Wave forayed into the dessert category under the name 'Third Rush', with plans to take it to 50 stores by the end of 2026. As reported by Business Standard, the company will continue its focus on F&B innovation, expanding beyond its core coffee proposition through desserts, signature brews, all-day menus, seasonal and festive limited-time offerings, breakfast and savoury formats. The objective is to increase the number of customer occasions that its outlets can serve rather than depending primarily on coffee-led visits. The latest investment builds on WestBridge Capital's longstanding partnership, having led the company's $21 million Series B round in 2022 and $6 million Series A in 2021.
Founded in 2017 by Sushant Goel, Ayush Bathwal and Anirudh Sharma, Third Wave Coffee operates cafes and sells products including coffee beans, cold brew bags and merchandise. According to Business Standard, the company has expanded across Bengaluru, Delhi-NCR, Hyderabad, Chennai, Mumbai, Pune and Bengaluru, besides Ahmedabad and Kolkata. The Indian coffee market, valued at about $1.2 billion in 2023, is projected to expand at a CAGR of 15-20% to $2.6-3.2 billion over the next two years. Third Wave competes with players such as Subko, Starbucks, Tim Hortons and Pret A Manger in India's food services market, valued at $80 billion in 2024. The fundraising comes as India's organised café segment becomes increasingly competitive, with domestic specialty coffee companies expanding alongside international chains.
