Bengaluru-based coffee chain Third Wave Coffee has raised Rs 408 crore ($43 million) in its latest funding round, led by existing investor WestBridge Capital. The round also saw participation from existing investor Creaegis and other angel investors, with most of the capital coming through a primary issuance.
The fresh capital will be used to expand the company’s presence in its existing markets, enter high-potential cities and accelerate the growth of its Third Rush Desserts business, according to the company.
The latest round reportedly values Third Wave Coffee at around Rs 2,000 crore ($210 million), up from a valuation of about Rs 1,200 crore during its previous funding round in 2023.
As part of its expansion plans, the coffee chain is preparing to enter nine new cities in the coming months, including Ludhiana, Jalandhar, Amritsar and Lucknow. The company also plans to strengthen its footprint across tier II and tier III cities.
Founded in 2017 by Sushant Goel, Ayush Bathwal and Anirudh Sharma, Third Wave Coffee has built a presence across Bengaluru, Delhi, Pune, Mumbai and Hyderabad, among other markets. Alongside its café network, the company sells coffee products including beans and cold brew bags.
WestBridge Capital has backed Third Wave Coffee since its Series A round and led its $21 million Series B funding in 2022. Creaegis, meanwhile, led the company’s $35 million Series C round in 2023.
With the latest fundraise, Third Wave Coffee’s total funding has crossed $105 million, giving the company additional capital to scale its retail footprint and diversify its offerings.
The funding comes as Third Wave Coffee continues to navigate a period of business transition. Following its 2023 fundraise, the company reportedly reduced its workforce by around 100 employees. Around the same period, co-founder Sushant Goel stepped down as CEO and moved to the company’s board. Rajat Luthra, former CEO of KFC India and Nepal, took over as CEO.
Financially, Third Wave Coffee reported operating revenue of Rs 285 crore in FY25, while its net loss narrowed to Rs 94 crore. The company has not yet filed its FY26 financial results.
-By Muskan Dengra
