Third Wave Coffee sees full-year sales surge but losses widen amid dash for growth

A Third Wave Coffee store in Bengaluru | Photo credit: Third Wave Coffee/Facebook

Bengaluru-based Third Wave Coffee has reported mixed full-year results with healthy revenue growth offset by heavy losses as the coffee chain ramps up growth plans. 
 

The specialty coffee roaster and café chain achieved 67% year-on-year revenue growth in the 12 months ended 31 March 2024 to reach Rs 241.3 Cr ($28.6m).  

However, Third Wave’s focus on expansion incurred significant staffing, rent and raw material costs, with the chain’s losses more than doubling year-on-year to Rs 110 Cr ($13m). 

The specialty coffee chain’s surging costs come as the business invests heavily in outlet growth, store delivery and its D2C e-commerce platform.  

Third Wave opened 15 net new stores over the last 12 months to reach 119 stores across eight Indian states and has a strong presence in the cities of Bengaluru and Mumbai. The coffee chain is seeking to reach 160 outlets within the next six months and plans to open up to 80 new sites annually from April 2025.  

In September 2023, Third Wave raised $35m in a Creaegis-led private equity round valuing the company at $150m, which it said marked a ‘monumental step’ in its goals to accelerate expansion and invest in its ‘digital first approach’.’ 

Just over six months later, the coffee chain appointed former Devyani International Limited (DIL) executive Rajat Luthra as its new CEO and highlighted his experience scaling fast-food chain KFC in India as key to unlocking its ‘next leg of growth’. 
 

Having raised over $60m to date, Third Wave also counts Bangalore-based WestBridge Capital and Singapore-based Redbrook among its investors.