Nikhil Kamath-backed Third Wave Coffee raises $35 million from Creaegis, others

Founded by Ayush Bathwal, Anirudh Sharma and Goel in 2017, the company has expanded to have over 100 stores in the country.

Third Wave Coffee, a specialty coffee and food brand that counts Zerodha co-founder Nikhil Kamath among investors, has raised $35 million in its Series C funding round led by Creaegis, a private equity firm, the startup said on September 28.

Westbridge Capital and Udaan’s Sujeet Kumar also participated in the round, which valued the startup at $150 million.

The Bengaluru-based Third Wave said it would use the funds to expand globally, improve supply chain and invest in technology.

“...the coffee-first QSR (quick service restaurant) industry is one of the fastest growing consumer categories in the country. We have grown 5x through the last year and strategically expanded our footprint across the nation,” Third Wave co-founder and CEO Sushant Goel said.

The fundraise comes days after Third Wave rival, Blue Tokai, raised money from actor Deepika Padukone in an extended Series B round of $30 million.

The specialty coffee space in India is warming up, with the entry of a number of home-grown brands which are giving global giants like Starbucks a run for their money.

Third Wave Coffee Roasters competes with Blue Tokai, Slay Coffee, Sleepy Owl Coffee, Hatti Kaapi and traditional chains such as Cafe Coffee Day among others.

“Going forward, we will continue to double down on technology and product innovation to deliver a superior cafe experience across the country,” Goel said.

Founded by Ayush Bathwal, Anirudh Sharma and Goel in 2017, the company has expanded to have over 100 stores in the country.

Third Wave's $35 million fundraise comes over a year after it raised $21 million from WestBridge Capital and others. With the latest round, it has now raised a total of over $65 million from a clutch of angel and institutional investors, as per Tracxn, a private markets data provider.

Third Wave Coffee is present in several major Indian cities including Bengaluru, Mumbai, Delhi, Gurugram, Pune, Hyderabad, Noida, Coonoor and Chandigarh.