Third Wave Coffee Raises Rs 408 Cr Led by WestBridge Capital

Third Wave Coffee Raises Rs 408 Cr Led by WestBridge Capital

Bengaluru-based coffee chain Third Wave Coffee has raised Rs 408 crore ($43 million) in a fresh funding round led by existing investor WestBridge Capital, with most of the capital coming through a primary share issuance.

Existing investor Creaegis and other angel investors also participated in the round.

The fresh capital will be used to expand Third Wave Coffee's presence in existing markets, enter high-potential cities and accelerate the growth of its Third Rush Desserts segment.

According to a Mint report, the latest funding values the company at around Rs 2,000 crore ($210 million), up from a valuation of approximately Rs 1,200 crore during its previous funding round.

Third Wave Coffee plans to enter nine new cities in the coming months, including Ludhiana, Jalandhar, Amritsar and Lucknow. The company also plans to deepen its presence across tier II and tier III cities as it expands its café network.

Founded in 2017 by Sushant Goel, Ayush Bathwal and Anirudh Sharma, Third Wave Coffee operates cafés across cities including Bengaluru, Delhi, Pune and Mumbai, while also selling products such as coffee beans and cold brew bags.

WestBridge has backed Third Wave Coffee since its Series A round and led the company's $21 million Series B round in 2022. Creaegis later led its $35 million Series C round in 2023.

The latest fundraise takes Third Wave Coffee's total funding to more than $105 million.

The company has also undergone changes in its leadership and operations in recent years. Following its previous fundraise, Third Wave Coffee laid off around 100 employees in 2023. Co-founder and then CEO Sushant Goel stepped down from the CEO role in 2024 and moved to the company's board.

Rajat Luthra, former CEO of KFC India and Nepal, was appointed as his replacement.

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.

The latest funding gives Third Wave Coffee additional capital to accelerate its expansion at a time when India's organised café market continues to become more competitive.

With plans to enter nine new cities and strengthen its presence in smaller markets, the next phase will test whether Third Wave Coffee can scale its café network while improving its financial performance and building stronger demand beyond its existing core markets.