New Delhi: Bengaluru-based coffee QSR (quick service restaurant) start-up Third Wave Coffee has raised $6 million as part of its Series A funding round. Several existing and new shareholders participated in the private equity round, including Sujeet Kumar (co-founder, Udaan), Arpan Sheth (Bain & Company) and Ayyappan Rajagopal (CEO, Cleartrip), amongst others.
The Series A funding comes just months after the start-up closed its pre-Series A funding round in April from a clutch of investors, including Sujeet Kumar, Nikhil Kamath, Neelesh Bhatnagar and Ayyappan Rajagopal. Third Wave Coffee counts itself as one of the top coffee QSRs in the country, with a significant market share presence across North and South India, in key markets like Delhi and Bengaluru. The firm said it has consistently focused on providing value for Indian consumers through innovative local and international offerings in coffee and food. It is offering offline first touchpoints to create a range of specially curated coffees, baked goods and food.
The fresh infusion will be used by the company for pan-India expansion and to hire a leadership team from top QSR brands.
“As the Indian economy grows, coffee consumption is becoming a daily part of gen-Z and early millennial habits, especially given their active social lives,” said Sushant Goel, co-founder and CEO, Third Wave Coffee. “A large part of this population falls within the high disposable income group and thus consumes premium organised brands more frequently. With more opportunities to visit cafes and more evolved tastes, consumers are drawn to QSRs that produce and source both ethically and locally.”
Since its launch in 2017, Third Wave Coffee has rapidly scaled the market and is en route to having the largest market share in Bangalore. In the last 12 months, the brand has tripled its number of stores. Third Wave Coffee has grown from 10 outlets at the end of 2020, to 35 outlets across 4 cities, including Delhi and, soon, Mumbai.