Third Wave Coffee has raised Rs 408 crore, or about $43 million, in a fresh funding round led by WestBridge Capital, giving the coffee chain more capital to widen its footprint while building out newer parts of the business.
Most of the money has come through a primary issuance, meaning fresh capital is going into the company. Existing investor Creaegis, along with other angel investors, also participated in the round.
The fundraise arrives as Third Wave Coffee prepares for another phase of expansion. The company plans to strengthen its presence in markets where it already operates, expand into high-potential cities and grow its Third Rush Desserts segment.
Nine new cities are on the expansion map
A notable part of the company’s next phase is its plan to enter nine additional cities in the coming months. Ludhiana, Jalandhar and Lucknow are among the locations identified, while the company is also looking to deepen its presence across tier II and tier III markets.
That gives the funding round a broader significance than simply adding more capital to the balance sheet. Third Wave Coffee is pairing its fundraising with a push beyond its established urban markets, while simultaneously expanding a desserts-led offering alongside its core coffee business.
The company already has a presence across cities including Delhi, Pune, Mumbai and Hyderabad, among others. Its business also extends beyond cafés to products such as coffee beans and cold brew bags.
Valuation rises to around Rs 2,000 crore
The latest round values Third Wave Coffee at around Rs 2,000 crore, or roughly $210 million, according to a Mint report cited in the coverage. That compares with a valuation of about Rs 1,200 crore, or $150 million, in the company’s previous funding round.
The capital raise also takes Third Wave Coffee’s cumulative funding to more than $105 million.
WestBridge Capital is not a new investor in the business. It has backed Third Wave Coffee since its Series A round and led the company’s $21 million Series B round in 2022. Creaegis subsequently led a $35 million Series C round in 2023.
The continued participation of investors already familiar with the company gives the latest round an element of continuity even as Third Wave Coffee prepares to enter new markets.
A business that has also gone through leadership changes
Founded in 2017 by Sushant Goel, Ayush Bathwal and Anirudh Sharma, Third Wave Coffee has undergone changes beyond fundraising and expansion.
Following its 2023 fundraise, the company laid off around 100 employees. Around the same period, co-founder and then chief executive Sushant Goel stepped down from the CEO position and moved to the board. Rajat Luthra, previously CEO of KFC India and Nepal, was appointed as his replacement.
The latest funding of Rs 408 crore now provides Third Wave Coffee more leeway in terms of finance to move ahead with its subsequent goals. The indicators that need to be observed immediately would be the pace at which the nine-city launch plan is implemented, the expansion plans in smaller cities, and the role played by Third Rush Desserts in the overall strategy.
For Third Wave Coffee, the latest fundraise is therefore not only about opening more cafés. It sets up a wider expansion plan involving new geographies, deeper penetration in existing markets and an attempt to build additional consumer occasions around the brand.
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