Coffee chain firm Third Wave Coffee has reportedly fired more than 100 employees months after raising $35 million in a Series C round. This is the first instance of layoffs at the Bengaluru-based company.
According to a Moneycontrol report, employees across teams such as tech, finance, marketing, business development and app have been asked to leave the firm.
This is not the first time a company has fired employees after raising new money. In October, e-commerce-focused packaging company Bizongo laid off employees shortly after announcing a $50 million whereas EV startup Euler Motors also trimmed 10% of its workforce within six months of a $60 million round.
Six-year-old Third Wave Coffee offers handpicked coffee and a curated food menu. It has cafes across different Indian cities namely Hyderabad, Coonoor, Bengaluru, Delhi (NCR), Mumbai, Chandigarh, and Pune. The firm claims to have about 109 stores, of which 50% are operational in Bengaluru.
As a part of the latest fundraise, the firm was looking to add another 50-60 outlets across smaller cities. Third Wave Coffee has raised over $60 million in the past 24 months across three funding rounds. Its investors include WestBridge Capital, Creagis, Udaan’s co-founder Sujeet Kumar and Zerodha’s co-founder Nikhil Kamath.
After the Series C round, Creagis had 13.61 % stake in the company while WestBridge and Sujeet Kumar owned 32.62% and 5.64%, respectively. Its co-founders, Sushant Goel, Ayush Bathwal, and Anirudh Sharma cumulatively command 26.03%.
Its competitors include Blue Tokai, Sabko Coffee, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co., among others.
