Third Wave Coffee secures $43 million to expand nationwide, reach 320 cafes, and strengthen its food and beverage portfolio.

Third Wave Coffee has raised $43 million in fresh funding led by existing investor WestBridge Capital, giving the Indian coffee and quick-service restaurant chain capital to accelerate expansion and broaden its food portfolio. The round, combining primary and secondary capital with participation from Cregis and angel investors, takes Third Wave Coffee’s total funding to $105 million. With more than 240 cafes across India, the company is targeting 320 outlets by the end of FY27 and plans to enter eight new geographies.

Third Wave Coffee targets wider national footprint

The investment will support deeper penetration, greater store density and expansion into new locations. Third Wave Coffee operates across Bengaluru, Delhi NCR, Hyderabad, Chennai, Mumbai, Ahmedabad, Mangalore and other places.

The corporation is also considering the eastern regions like Guwahati, Ranchi, Patna, and Bhubaneswar. According to Rajat Luthra, who is the CEO of the company, the intention of opening 100 coffee outlets annually depicts growth potential in India.

Key highlights:

  • Third Wave Coffee targets 320 cafes by FY27-end.

  • WestBridge Capital led the $43 million funding round.

  • Total company funding has reached $105 million.

  • Expansion will cover new and existing markets.

  • Food categories beyond coffee will receive greater focus.

New food categories support growth strategy

Third Wave Coffee is expanding its food and beverage offering alongside store growth. Its strategy includes Third Rush Desserts, signature non-coffee beverages, all day menus, seasonal products, breakfast and savoury formats.

The company claims that it will ensure a perfect balance between growth and unit economics, store payback and operational discipline. It had a revenue of Rs 285 crore for FY2024-25, with its net loss being Rs 94 crore.

For WestBridge Capital, the transaction builds on an established relationship with the coffee chain. The investor previously led Third Wave Coffee’s $21 million Series B round in 2022, after participating in its $6 million Series A in 2021. WestBridge co-founder and managing partner Sandeep Singhal said India’s coffee category is becoming increasingly important, highlighting the company’s focus on quality and execution.

Founded by Sushant Goel, Anirudh Sharma and Ayush Bathwal, Third Wave Coffee has grown into one of India’s prominent homegrown coffee chains. Its expansion comes as competition intensifies across the country’s organized cafe and QSR market.

Business Fortune believes that Third Wave Coffee’s expansion strategy could strengthen its position in India’s competitive cafe market.

 

FAQs

How much funding has Third Wave Coffee raised?

Third Wave Coffee has raised $43 million in its latest funding round, taking its total funding to $105 million.

Who led Third Wave Coffee’s latest funding round?

The $43 million funding round was led by existing investor WestBridge Capital, with participation from Cregis and angel investors.

How many cafes does Third Wave Coffee plan to operate by FY27?

Third Wave Coffee aims to increase its network to 320 cafes by the end of FY27, with plans to enter eight new geographies.

Which new markets is Third Wave Coffee considering?

The company is exploring expansion into eastern markets, including Guwahati, Ranchi, Patna and Bhubaneswar, while increasing density in existing markets.

What new food categories is Third Wave Coffee focusing on?

The company is expanding beyond coffee through Third Rush Desserts, non-coffee beverages, all-day menus, seasonal products, breakfast offerings and savoury formats.