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Third Wave Coffee Raises ₹408 Cr To Expand Cafe Network, Dessert Business

StartupsAugust 24, 20263 min readAttributed summary
Third Wave Coffee Raises ₹408 Cr To Expand Cafe Network, Dessert Business
Third Wave Coffee has raised ₹408 Cr in a funding round led by existing investor WestBridge Capital, with participation from Creagis and angel investors The Bengaluru-based coffee
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Third Wave Coffee has raised ₹408 Cr in a funding round led by existing investor WestBridge Capital, with participation from Creagis and angel investors

The Bengaluru-based coffee chain plans to use the primary proceeds to expand its presence in existing markets, increase store density in high-potential cities, and scale Third Rush Desserts

Third Wave Coffee currently operates more than 240 cafes across India and aims to expand its network to 320 outlets by the end of the current financial year

Coffee QSR chain Third Wave CoffeeThird Wave Coffee Datalabs_in-article-icon has raised ₹408 Cr (around $43 Mn) in a fresh funding round led by its existing backer WestBridge Capital.

The round, comprising a mix of primary and secondary capital, also saw participation from Creagis and undisclosed angel investors, it said in a statement. However, Third Wave Coffee did not disclose the primary-secondary split or the name of the shareholders who sold stakes. 

The Bengaluru-based coffee chain plans to use the primary proceeds to expand its presence in existing markets, increase store density in high-potential cities, and scale Third Rush Desserts –  the dessert segment it launched earlier this year. 

Third Wave Coffee currently operates more than 240 cafes across India and aims to expand its network to 320 outlets by the end of the current financial year. It also plans to enter eight new geographies by September. 

“Our vision to add 100 new cafes every year reflects the significant opportunity we see ahead,” Third Wave Coffee CEO Rajat Luthra said. 

Over the past year, the coffee chain has entered Ahmedabad, Mangalore, and Agra, while expanding its presence across Delhi NCR, Hyderabad, Chennai, Mumbai, and Pune. 

It entered eastern India with three cafes in Kolkata in June 2026 and is evaluating expansion into Guwahati, Ranchi, Patna, and Bhubaneswar. 

Prior to this, Third Wave Coffee raised $35 Mn in a Series C round led by Creagis, along with participation from Westbridge and Udaan cofounder Sujeet Kumar. With the fresh funding round, the coffee QSR chain has raised a total of around $105 Mn in funding to date.

Founded by Sushant Goel, Anirudh Sharma, and Ayush Bathwal in 2016, Third Wave competes with homegrown coffee chains such as Blue Tokai and Nothing Before Coffee, as well as global giants like Starbucks and Tim Hortons. 

In 2024 Third Wave Coffee onboarded Luthra as founder while cofounder and then CEO Goel transitioned to a board role. 

Driven by rising disposable incomes and growing awareness of speciality coffee, India’s coffee market is seeing the emergence of newer cafe chains such as abCoffee and First Coffee. The country’s specialty coffee market is expected to rise to $6.52 Bn by 2031 from $3.01 Bn in 2025, as India’s coffee culture evolves beyond instant blends.

As a result, investors are aggressively backing new coffee QSR chains In May, abCoffee raised ₹61 Cr to expand across existing and new markets, including Mumbai, Delhi NCR, and Bengaluru. 

Source: Inc42

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