Less than three months after securing a $35 million funding round, Bengaluru-based Third Wave Coffee, a quick-service restaurant (QSR) chain, has undertaken a restructuring process resulting in the termination of approximately 10% of its workforce.
The layoff process began earlier this week, impacting almost all departments within the company, as sources revealed. Over 80 employees lost their jobs in this exercise.
Additionally, the startup has not cleared the dues of some of its vendors for quite some time, as reported by sources.
Third Wave Coffee officially acknowledged the layoffs in a statement. “TWC post a strategic review has decided on a one-time restructuring exercise to consolidate our teams, impacting less than 10% of the organisation. As an organisation we are in a strong position post the recent fundraise. We will continue to scale and build TWC as India’s most loved coffee brand.”
However, the startup did not address queries on pending vendor payments nor did it share details about the severance package being offered to the impacted employees.
Third Wave Coffee also refrained from revealing the count of its employees before the restructuring exercise. However, according to information available on LinkedIn, the company has approximately 580 employees.
In September, the startup secured $35 million in a Series C funding round led by Creagis. Existing investors, such as WestBridge Capital and Udaan co-founder Sujeet Kumar, also participated in the funding round.
Continue Exploring: Third Wave Coffee raises $35 Million in Series C funding round led by Creaegis, plans to enhance cafe experience and expand technology innovation
According to media reports, the startup secured funding at a valuation of $150 million.
Back then, the startup announced its plans to use the fresh capital to double down on technology and product innovation to enhance the cafe experience across the country.
Established in 2017 by Ayush Bathwal, Anirudh Sharma, and Sushant Goel, the startup presently runs more than 100 stores nationwide. Additionally, it markets coffee products through its official website and various e-commerce platforms.
In FY22, the startup experienced a loss of INR 14.6 Crores, marking a 230% surge compared to the preceding fiscal year. Meanwhile, the total revenue witnessed a substantial increase of 177%, reaching INR 32 Crores.
Third Wave Coffee competes with the likes of Slay Coffee, Blue Tokai, Starbucks, among others.