Third Wave Coffee Trims Workforce After $35M Funding Round, Targets Expansion Amid Industry Growth

22 Dec 2023 , 03:27 PM

Third Wave Coffee, a specialty coffee and food brand with investment from Zerodha co-founder Nikhil Kamath, has reportedly terminated 100-120 employees across various teams, including tech, finance, marketing, business development, and app.

The decision to reduce headcount follows the startup’s successful Series C funding round, where it raised $35 million from investors such as Creaegis, Westbridge Capital, and Udaan’s Sujeet Kumar, led by private equity firm Creaegis.

Employees were informed about the layoffs through in-person meetings with the head of HR and the founder, with no written communication provided. The restructuring initiative has been ongoing for the past two days, with another round expected on December 15.

Even senior leaders within the organization have been affected by the decision. The company, backed by Gaurav Munjal and Roman Saini of Unacademy, is offering affected employees two months’ salary for an immediate exit or the option to work until mid-February.

Third Wave, with over 100 stores in India, recently expressed plans to expand its offline presence across the country. Despite the restructuring, the company emphasized its strong position post the recent fundraise and aims to continue scaling and building as India’s most loved coffee brand.

The coffee startup has raised over $65 million from angel and institutional investors to achieve its growth targets in the competitive specialty coffee market in India. The sector is witnessing increased interest with the emergence of home-grown brands challenging global giants like Starbucks.

Third Wave Coffee Roasters faces competition from Blue Tokai, Slay Coffee, Sleepy Owl Coffee, Hatti Kaapi, and traditional chains like Cafe Coffee Day.

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