QSR startup Third Wave Coffee raises $6 million in Series A funding

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Quick service restaurant startup Third Wave Coffee on Tuesday said it has raised $6 million (about Rs 45.5 crore) in funding from a clutch of investors, including Udaan co-founder Sujeet Kumar.

The series A funding round saw participation from several existing and new shareholders, including Sujeet Kumar (Udaan co-founder), Arpan Sheth (Bain & Company) and Ayyappan Rajagopal (CEO of Cleartrip) amongst others, a statement said.

The funding comes just months after the Bengaluru-based coffee startup had closed its pre-series A funding round in April from a clutch of investors, including Kumar, Nikhil Kamath, Rajagopal, Neelesh Bhatnagar and others.

The fresh infusion will be used by the company for pan-India expansion and to hire a leadership team from top QSR (Quick Service Restaurant) brands, it said.

Since its launch in 2017, Third Wave Coffee has rapidly scaled the market and is en route to having the largest market share in Bengaluru, the statement said.

In the last 12 months, the brand has tripled its number of stores.

Founded by Ayush Bathwal, Anirudh Sharma and Sushant Goel, the startup has grown from 10 outlets last year to 35 outlets across four cities, including Delhi.

As the Indian economy grows, coffee consumption becomes a daily part of gen-Z and early millennial habits, especially given their active social lives.

"A large part of this population falls within the high disposable income group and thus consumes premium organised brands more frequently,” Third Wave Coffee co-founder and CEO Sushant Goel said.

With more opportunities to visit cafes and more evolved tastes, consumers are drawn to QSRs that produce and source both ethically and locally, he added.

"Third Wave Coffee aims to disrupt the coffee space by breaking the monotony of the usual flavours with globally-influenced coffee and food pairings that match the palate of the modern, discerning Indian consumer," he said.