Bengaluru-based coffee chain Third Wave Coffee is in advanced talks to raise its first institutional funding of around $20-25 million, led by WestBridge Capital.

First reported by ET, citing sources, the round also includes a secondary share sale in which some of its early individual investors will exit. According to the sources, besides WestBridge Capital, existing backer Sujeet Kumar, cofounder of Udaan, is also investing more in this round.

The source added,

“They are expanding in Mumbai significantly now after having entered the Delhi-NCR market. Pune is another market for them in the western part of the country.”

Third Wave Coffee | Coffee For Everyone

Founded by Sushant Goel, Anirudh Sharma and Ayush Bathwal in 2017, Third Wave Coffee runs around 40-50 outlets across India’s top five cities, including Delhi-NCR and Bengaluru. The Bengaluru-based coffee chain also sells a range of coffee powders under the same brand.

The Bengaluru-based coffee chain will use the new capital to double down on post-pandemic expansion across Mumbai, Delhi and other cities. On the completion of the deal, the brand is expected to be valued at $80-100 million.

Speaking about the development, one of the sources said,

“WestBridge is leading the round, which will include secondaries as Third Wave had raised capital initially through smaller cheques from many individuals, and several of them are being given exits.”

As per the sources, the monthly revenue of Third Wave Coffee is around Rs 7-8 crore.

In December 2021, the Bengaluru-based coffee chain said it had tripled the number of stores to around 35 over the past year. In the same month, Third Wave Coffee raised $6 million.

Apart from Third Wave Coffee, Blue Tokai is another new-age coffee chain in urban markets, competing with older firms such as Barista, Starbucks, CCD and Costa Coffee.

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