Bengaluru-based café chain Third Wave Coffee reported a 67% increase in operating revenue to INR 241 crore for the financial year ended March 31.
Third Wave Coffee losses reaches to INR 110 Cr
However, its net loss nearly doubled to INR 110 crore due to a significant rise in expenses.
According to financial statements sourced from Tofler, total expenses increased to INR 358 crore from INR 201 crore. Employee benefits and cost of materials accounted for INR 97 crore and INR 88 crore, respectively.
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The company had laid off over 100 employees in December last year, following a $35 million funding round led by Creaegis in September 2023. Third Wave has raised $66 million to date.
Expenses on selling and marketing surged to INR 12 crore from INR 2 crore, while rent costs rose 88% to INR 81 crore. Rajat Luthra, former head of KFC India and Nepal, took over as CEO in April, replacing Sushant Goel, who transitioned to a board role.
Third Wave operates 110 outlets
Third Wave competes with Starbucks, Cafe Coffee Day, and Blue Tokai. The company plans to open 50 stores in existing markets and enter new cities like Chennai. With over 110 stores, half of which are in Bengaluru, Third Wave aims to expand its presence.
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In contrast, Tata Starbucks reported a 12% increase in operating revenue to INR 1,218 crore. Starbucks has introduced low-priced offerings to boost footfall. Other specialty coffee brands, such as Slay Coffee, Sleepy Owl Coffee, and Rage Coffee, have also gained traction.
Recent funding rounds in the specialty coffee segment include First Coffee‘s $1.2 million raise led by Beenext and AbCoffee‘s $3.4 million raise led by Nexus Venture Partners. Subko, a specialty coffee roaster, raised $10 million led by Zerodha cofounder Nikhil Kamath.
