Third Wave Coffee has raised Rs 408 crore ($43 million) in a funding round led by existing investor WestBridge Capital as the homegrown coffee and quick-service restaurant (QSR) chain steps up expansion and broadens its food and beverage offerings.
The latest round included a combination of primary and secondary capital, with Cregis and other angel investors also participating. The company plans to deploy the funds to strengthen its presence in existing markets, enter new geographies, and increase store density across high-potential cities.
Third Wave Coffee currently operates more than 240 cafes across India and plans to increase its network to 320 cafes by the end of the fiscal year.
“We currently operate more than 240 cafes across India and are aiming to reach 320 cafes by fiscal end,” CEO Rajat Luthra said. “By next month, we will be entering eight new geographies.”
Over the past year, the coffee chain has entered Ahmedabad, Mangalore, and Agra while expanding its footprint across Delhi, the National Capital Region, Hyderabad, Chennai, Mumbai, and Pune.
In June, Third Wave Coffee entered eastern India with three cafes in Kolkata. The company is also evaluating potential expansion into Guwahati, Ranchi, Patna, and Bhubaneswar.
Alongside its geographical expansion, Third Wave Coffee plans to strengthen its food and beverage portfolio beyond coffee. Its strategy includes Third Rush Desserts, signature non-coffee beverages, all-day menus, seasonal offerings, breakfast options, and savoury formats.
The company aims to use these newer categories to increase customer engagement and strengthen its proposition across different consumption occasions.
For WestBridge Capital, the latest investment builds on its long-standing association with Third Wave Coffee. The investor led the company’s $21 million Series B funding round in 2022, after participating in its $6 million Series A round in 2021.
“Coffee is becoming an increasingly important consumer category in India, and Third Wave Coffee has built a strong position through its relentless focus on quality and execution,” said Sandeep Singhal, co-founder and managing partner at WestBridge Capital.
Founded in 2016 by Sushant Goel, Anirudh Sharma, and Ayush Bathwal, Third Wave Coffee has grown into one of India’s larger homegrown coffee chains. It operates in an increasingly competitive market that has attracted both domestic and international players.
The company said its expansion strategy centres on adding 100 cafes annually while maintaining a strong focus on unit economics, store payback, and operational discipline.
With the fresh capital, Third Wave Coffee will combine rapid geographic expansion with greater store density and a wider food and beverage portfolio. The Rs 408-crore funding round is expected to support the company’s next phase of growth as it scales its cafe network across India.
