Third Wave Coffee has secured Rs 408 crore ($43 million) in a fresh funding round led by existing investor WestBridge Capital, as the Indian coffee and quick-service restaurant chain prepares to accelerate its expansion across the country.
The funding round included both primary and secondary capital, with Cregis and several angel investors also participating.
The company plans to deploy the funds towards strengthening its presence in existing markets, entering new cities and increasing the number of outlets in locations with strong growth potential.
Third Wave Coffee Expansion Plans
Third Wave Coffee currently operates more than 240 cafes across India and is targeting 320 outlets by the end of the financial year. CEO Rajat Luthra said the company plans to enter eight new geographies next month.
Over the past year, the chain has expanded into Ahmedabad, Mangalore and Agra while increasing its presence in Delhi-NCR, Hyderabad, Chennai, Mumbai and Pune.
It also entered eastern India with three outlets in Kolkata in June and is evaluating cities such as Guwahati, Ranchi, Patna and Bhubaneswar.
Beyond Coffee
The company is also seeking to broaden its offering beyond coffee. Its expansion strategy includes Third Rush Desserts, non-coffee beverages, breakfast products, savoury food, all-day menus and seasonal offerings.
WestBridge Capital’s latest investment builds on its existing relationship with the company. The investor previously led Third Wave Coffee’s $21 million Series B funding round in 2022, following a $6 million Series A investment in 2021.
Founded in 2016 by Sushant Goel, Anirudh Sharma and Ayush Bathwal, Third Wave Coffee has become one of India’s prominent homegrown coffee chains.
The company aims to add around 100 cafes annually while maintaining focus on store-level economics, payback periods and operational efficiency.