Third Wave Coffee raises ₹408 crore to push into smaller Indian cities
What's the deal? Bengaluru-based café chain Third Wave Coffee has raised ₹408 crore (roughly $43 million) in a late-stage round led by existing investor WestBridge CapitalDealroom has a profile for this one. Try Dealroom →, with participation from CreaegisDealroom has a profile for this one. Try Dealroom → and angel investors. The capital was largely primary, with a small secondary component through which some early founders and minor shareholders exited part of their stake.
The numbers: The deal ranks in the 78th percentile by size among comparable rounds — a sizeable raise for a consumer chain. Westbridge's stake rises to about 47%, while Creaegis holds close to 15%; founders and angels hold the rest.
What's the endgame? Founded in 2017 by Sushant Goel, Ayush Bathwal, and Anirudh Sharma, Third Wave runs about 240 outlets and sells coffee beans, cold brew bags, and merchandise. It plans to reach 320 stores by the end of FY27 and eventually 400 to 500.
Where it's expanding: The company will foray into nine new cities in the coming months, including Ludhiana, Jalandhar, Amritsar, and Lucknow, its chief executive officer Rajat Luthra and Sharma said. It recently opened stores in Ahmedabad and Kolkata and plans to deepen its presence in tier-II and tier-III cities.
Why now? "The idea is to keep building and scale to about 400-500 stores over the next few years," said Sandeep Singhal, co-founder and managing partner at Westbridge Capital. He called coffee a "great category," describing it as a habit-forming activity consumed by many Indian households, with Third Wave already a market leader.
The new capital will fund geographic growth in existing markets, greater density in high-potential cities, and new food and beverage categories.
The signal: The raise continues Westbridge's long backing of Third Wave, which it supported through a $6 million Series A in 2021, a $21 million Series B in 2022, and a $35 million round in 2023. As investor interest in India's consumer startups grows, the bet reflects confidence that packaged and café coffee can scale across the country's smaller cities.
Read more: livemint.com
Image credit: Third Wave Coffee Roasters
