Third Wave’s QSR Test, Urban Company Sues Kent RO, and slice appoints Samir Sawhney

Third Wave Coffee’s real turning point came after it had already raised serious venture money. In September 2023, it raised $35 million. By December, it was laying off employees. A few months later, founder Sushant Goel stepped aside as CEO and former KFC India chief Rajat Luthra took over. At the time, Third Wave had around 110 cafés and its rapid expansion had clearly stretched the economics.

The company that emerged from that reset looks less like a specialty coffee startup and more like a premium QSR chain.

Management now talks about store construction time, clusters, food mix, same-store transactions, desserts and payback periods. Beverages contribute roughly 63–65% of sales, but food already brings another 27-28%. Third Rush, its dessert format, is being introduced inside existing cafés to bring customers in during evenings without adding another lease. That matters because rent is paid all day, even if coffee demand peaks only during a few hours.

The financial repair is visible, although incomplete. Operating revenue rose from about ₹144 crore in FY23 to ₹269 crore in FY25 and management says FY26 reached roughly ₹337 crore. The company still lost ₹94 crore in FY25, but management says more than 95% of stores are now unit-economics positive, with mature cafés capable of 16–18% store-level EBITDA margins.

WestBridge clearly believes the improvement is real. It has now led a ₹408 crore round at a valuation of roughly ₹2,000 crore and will own about 47% of the company. But the deal is less generous than expected only three months ago, when Third Wave was reportedly discussing $80-100 million at a $400-500 million valuation. The final cheque and valuation are roughly half those levels.

Competition also keeps the story grounded. Blue Tokai, with a similar store count, generated ₹325 crore of FY25 operating revenue and lost about ₹50 crore, compared with Third Wave’s ₹269 crore revenue and ₹94 crore loss. Starbucks remains much larger, with 502 stores and ₹1,367 crore of FY26 revenue.

So the ₹408 crore round does not prove Third Wave has fixed the business. It finances the next test.

Third Wave wants to move from roughly 240 cafés toward 400-500 while remaining COCO, which means it pays for every lease, fit-out and opening itself. If the next 100 stores produce the same economics management now claims from the current network, the turnaround is real.

If losses start rising again, 2024 will look less like a permanent fix and more like a pause before another expensive expansion cycle.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Mai Tera Khoon Pi Jaaunga”: Urban Company Sues Kent RO

Urban Company dragged Kent RO to the Delhi High Court for running ads that mocked the two-year filter and service claims of its Native water purifiers.

Rather than fighting it out, Kent backed down fast and agreed to pull the disputed promotional content entirely.

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“Aaiye Aapka Intezaar Tha”: LightFury Games Adds Rohit Sharma As Investor

Rohit Sharma has joined LightFury Games as an investor and licensed player in its upcoming mobile game, eCricket.

The startup’s closed beta begins in September, with over 3 Lakh sign-ups and 700+ licensed cricketers already on board.

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“Swagat Nahi Karoge Humara”: Slice Appoints Samir Sawhney as Executive Director

slice Small Finance Bank has appointed Samir Sawhney as executive director and Ramesh Kumar as independent director.

Sawhney brings over three decades of SBI experience, while Kumar spent two decades at ICICI Bank across technology and digital banking.

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“Yeh Le, Aur Yeh Bhi Le”: Mobavenue Launches Neural Engine For Marketers

Mobavenue has launched Neural Engine, an AI intelligence layer that brings media planning, execution, creative generation and reporting into one workflow.

The company says the system can take campaign briefs to launch in under 59 seconds after marketer approval.

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“Paisa Hi Piasa Hoga”: Y Combinator Sells ₹970 Cr Meesho Stake

Y Combinator has sold around 4.84 Cr Meesho shares worth ₹969.63 Cr through a block deal on the NSE.

The sale comes weeks after Peak XV Partners and Elevation Capital sold Meesho shares worth nearly ₹1,949 Cr.

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“Exit Ka Chashma Pehen Liya”: SoftBank Sells Lenskart Stake

SoftBank has sold 4.5 Cr Lenskart shares for about ₹2,888 Cr through a block deal, marking its second large partial exit from the eyewear company since June.

The latest sale takes total Lenskart stake sales by major institutional investors since June to over $1 Bn.

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“Health Ka Global Milan”: Healthify Merges With US-Based Berry Street

Bengaluru-based Healthify has merged with US-based nutrition care company Berry Street in an all-stock deal. Financial details were not disclosed.

The combined entity will use Healthify’s AI platform and Berry Street’s clinical network to build an insurance-covered metabolic health platform in the US.

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1. WATER Robotics has raised $2.5 Mn to build India’s first robotic bed, in a round led by Endiya Partners.

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2. D2C skincare brand Asaya has raised ₹88 Cr from existing investors at a ₹400 Cr valuation.

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3. Third Wave Coffee has raised ₹408 Cr led by WestBridge Capital to expand its café network and dessert business.

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