Indian specialty espresso QSR Third Wave Espresso has raised Rs 408 crore ($43 million) in a funding spherical led by present investor WestBridge Capital, because the brand steps up its growth in an more and more aggressive cafe market.

The spherical comprised a mixture of main and secondary capital and in addition included present investor Creaegis and angel investors.

Third Wave stated the contemporary capital will probably be used to broaden in present markets, improve retailer density in high-potential cities and develop newer classes, together with its Third Rush Desserts enterprise, which was launched earlier this yr.

The Bengaluru-based startup operates greater than 240 cafes throughout India and plans to extend that quantity to 320 by the top of the present monetary yr. It additionally expects to enter eight new geographies by September.

“Our focus stays on scaling the enterprise sustainably, with sturdy unit economics, wholesome retailer payback economics and operational self-discipline,” CEO Rajat Luthra stated.

The startup has a longer-term ambition so as to add about 100 cafes every year.

Third Wave has expanded into Ahmedabad, Mangaluru and Agra over the previous yr, whereas growing its presence in Delhi-NCR, Hyderabad, Chennai, Mumbai and Pune.

It entered jap India in June with three cafes in Kolkata and is contemplating additional growth into Guwahati, Ranchi, Patna and Bhubaneswar.

Third Wave was based by Sushant Goel, Ayush Bathwal and Anirudh Sharma. It operates cafes in addition to a retail enterprise promoting merchandise together with espresso beans and different at-home espresso merchandise.

Its newest growth comes as espresso chains make investments closely in India’s branded cafe market, the place firms are competing by way of new retailers, wider meals menus and merchandise geared toward attracting clients past conventional espresso events.

The brand new funding provides to a number of earlier funding rounds for Third Wave.

WestBridge led a $21 million Sequence B spherical in 2022. A yr later, Creaegis led a $35 million Sequence C funding, with WestBridge and Udaan co-founder Sujeet Kumar additionally taking part.

The most recent spherical takes Third Wave’s complete funding to about $105 million.

The startup has additionally made modifications to its administration because it has expanded. Luthra, who beforehand led KFC’s enterprise in India and Nepal, became CEO in 2024, changing co-founder Sushant Goel, who moved to the startup’s board.