Third Wave Coffee bets on desserts and $100M round to fix its loss-making cafe math
Bengaluru chain Third Wave Coffee is pivoting into desserts via Third Rush after FY24 losses of Rs 150 crore on Rs 250 crore revenue. New CEO Rajat Luthra narrowed FY25 losses to Rs 94 crore on Rs 285 crore revenue, with 90% of cafes now Ebitda positive. It plans 50 new cafes and a $100M growth round from Westbridge and Creagis.
What happened
Bengaluru's Third Wave Coffee pivots to desserts via Third Rush amid heavy losses. New CEO Rajat Luthra narrowed FY25 losses; chain plans 50 cafes and is
Key facts
- 50 cafes
- Rs 150 crore loss FY24
- Rs 250 crore revenue FY24
- 70% loss-making stores
- Rs 665 crore raised
- $70 million
- 10 funding rounds
- Rs 94 crore loss FY25
- Rs 285 crore revenue FY25
- 90% cafes Ebitda positive
- $100 million growth round
- 200+ dessert options
Why this matters
Third Wave's dessert pivot and fresh capital position it as an emerging consolidator or attractive acquisition target in India's fragmented café-and-F&B space, worth tracking for partnership or roll-up angles.
What to watch
- FY26 loss trajectory vs Rs 94 cr baseline
- Same-store sales growth and dessert attach percentage
- New cafe payback period and time-to-Ebitda-positive
- Round closing terms and any down-round signal
- Competitor store openings within 1km of Third Wave cafes
- Gross margin impact from dessert cold-chain and wastage
- Close $100M round from Westbridge/Creagis and disclose valuation vs prior mark
- Launch Third Rush dessert menu across flagship cafes and test standalone kiosks
- Prune bottom 10% loss-making cafes before adding 50 new ones
- Roll out loyalty/app push to lift repeat frequency and dessert attach rate
- Renegotiate lease and COGS terms to protect newly-positive unit Ebitda