Third Wave Coffee is preparing a new funding round led by Westbridge

Bangalore: Third Wave Coffee, a Bengaluru-based coffee chain popular with the city’s startup community, is in advanced talks to raise its first institutional funding of approximately $ 20-25 million led by Capital of the West BridgeSources familiar with the matter said.

The round also includes a secondary stock sale in which some of its first individual investors will exit. Once the deal is concluded, the startup is expected to be worth $ 80-100 million, people briefed on the matter said.

“WestBridge is leading the round which will include the secondary as Third Wave had initially raised capital through smaller checks from many people and many of them got exits,” said one person aware of the matter. the quick service restaurant The format coffee chain company (QSR) had raised $ 6 million in December 2021.

In addition to WestBridge Capital, existing supporter Sujeet Kumar, co-founder of udaanis also investing more in this round, according to the people mentioned above.

Founded in 2017 by Sushant Goel, Ayush Bathwal and Anirudh Sharma, Third Wave operates around 40-50 stores in India’s top five cities, including Delhi-NCR and Bengaluru. Its monthly income is around Rs 7-8 crore, the sources said. It also sells a range of ground coffees under the same brand.

The company will use the new capital to double its post-pandemic expansion to Mumbai, Delhi and other cities. “They are expanding significantly in Mumbai now after entering the Delhi-NCR market. Pune is another market for them in the western part of the country, “a source said.

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Goel declined to comment as an email sent to WestBridge Capital elicited no response.

In December, Third Wave said it tripled the number of stores to around 35 in the past year. Blue Tokai is another new age coffee chain in urban markets, competing with older companies like Starbucks, Cafe Coffee Day, and Costa Coffee.

WestBridge Capital, which previously supported Cafe Coffee Day, invests in traditional industries and new age companies. Its portfolio includes startups such as the SaaS Innovaccer platform, the Rapido mobility company, the edtech company Vedantu, among others.

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