Third Wave Coffee’s Next Growth Phase: Deeper Market Penetration and East India Corridor Expansion

Founded in 2016 by Sushant Goel, Anirudh Sharma, and Ayush Bathwal, Third Wave Coffee entered the market when coffee giants like Starbuck, Cafe Coffee Day, Barista, and many other local brands were already in the field. But the brand soon gained the attention of the coffee aficionado of the country due to its quality and consistency. The brand, with its strong brand identity, positioning and customer satisfaction, began spreading its wings and rapidly scale across the country.

The brand reached new heights under the leadership of Mr. Rajat Luthra, CEO of Third Wave Coffee, who played a prominent role in anchoring the next phase of brand expansion.

Brand Expansion Goal

Talking about the brand’s expansion goal, Rajat Luthra, CEO, Third Wave Coffee, said, ‘‘Our plan is to reach 320 stores by FY27, anchored by discipline, profitability led expansion, stronger store economics, faster payback and higher productivity as key priorities.’’

He shares that around 70% of the new cafés will be in existing markets, allowing Third Wave Coffee to deepen its presence in proven markets such as Bengaluru, Delhi NCR, Hyderabad, Mumbai, Chennai and Pune, while the remaining expansion plan will target new cities.

He says, ‘‘As we continue to grow, a significant part of our expansion will come from deepening our presence in existing markets, where we continue to see meaningful headroom for growth.’’

Discussing the potential of Tier 2 cities, he says ‘‘Tier-2 cities are increasingly becoming an important part of our expansion strategy. Our experience in markets such as Mysuru, Mangaluru and Agra is giving us a stronger understanding of the demand and potential for specialty coffee beyond metros.’’

Market Footprint in India

Third Wave Coffee currently operates over 245 cafés across 22 markets in India, with a strong presence across key metros including Mumbai, Bengaluru, Delhi-NCR, Pune, Hyderabad and Chennai, among others.

Brand’s Growth Opportunities in East India Corridor

The brand is also making its presence in the Eastern part of the country through the East India Corridor.

Discussing the East India Corridor project, Rajat said, ‘‘East India is an important new growth corridor for us, with Kolkata being the anchor market. Following our June launch, we plan to add more cafés in Kolkata and then cover rest of the markets in East India.’’

He further discusses the opportunities in the East India market with Kolkata emerging as a natural starting point of this expansion, given the rich café culture, long-standing tradition of social gatherings and evolving consumer demand for premium coffee and experience-led spaces in the region.

Rajat said ‘‘We see significant opportunities in East India, which is an important part of our broader vision of building a truly pan-India brand. Having built a strong foothold across South, North and West India, we believe the Eastern region will offer strong potential for our next phase of growth.’’ He adds, ‘‘We undertook extensive research before entering any new market to understand consumer preferences, local market dynamics and the overall opportunity. This helps us prepare our offering and operating model accordingly. As a result, our entry into East India has been well planned, and we did not encounter any significant challenges during the expansion phase.’’

He further shares that the city’s (Kolkata) diverse and culturally engaged consumer base, including young professionals, students and creative communities, align strongly with the long-term growth ambitions of the brand. It is one of the key markets where the company has launched both Third Wave Coffee and Third Rush Desserts, and the response to both propositions has been phenomenal.

What Differentiates It From Other Cafés?

Talking about the brand’s USP, Rajat shares that the brand follows a combination of ‘farm-to-cup’ sourcing, in-house roasting, product innovation, and consistency that differentiate Third Wave Coffee from the rest, in an increasingly competitive market. Alongside this, the brand is also building stronger connections with the consumers through community-led events and experiences at the cafés.

Rajat reveals, ‘‘We source coffee directly from Indian farms, roast it in our in-house facility, and create artisanal beverages. With one of the largest roasteries in the country, we maintain strict quality controls across brewing and service.’’ He adds, ‘‘As the market continues to evolve, we will continue to strengthen these aspects of our business.’’ 

Major Investments and Product Innovation by the Brand

While store expansion remains a key focus for Third Wave Coffee, the brand is also investing in the capabilities needed to support growth at scale.

Talking about the brand’s investments, Rajat shares, ‘‘We have invested in technology, including strengthening our app and digital experience to create a more seamless and engaging experience for our consumers.’’ He adds, ‘‘As we continue to grow, we will invest accordingly across our operations, technology, supply chain, product capabilities and customer experience, guided by what the business needs to scale efficiently while continuing to deliver a consistent experience to our consumers.’’

Further emphasizing on the product innovation aspect, he says, ‘‘Product innovation remains another important area of focus for us. Over the years, we have experimented with a variety of food and beverage formats, aligned with the changing preferences of our consumers. Our R&D-backed food innovation team and lab, supported by our roastery, have helped us develop offerings across multiple consumption occasions. Product diversification allows us to cater to a wider range of preferences, remain relevant to our consumers and encourage repeat visits.’’

Speciality Coffee Market in India

According to a market research report, the India Specialty Coffee Market has reached USD 3.01 billion in 2025, and is expected to grow at USD 6.52 billion by 2031, having a CAGR of 13.75%. The segment is witnessing robust growth due to rising consumer awareness about premium coffee, evolving taste preferences, and increasing café culture in urban areas. Specialty coffee, characterized by high-quality Arabica beans, unique flavor profiles, and traceable sourcing, is largely appealing to millennials, Gen-Z and health-conscious consumers seeking a premium experience.

Discussing about this niche segment that is an emerging consumer preference in the country, Rajat shares, ‘‘Today, India’s specialty coffee market is still at an emerging stage, but we believe that over the next 5–10 years, it will become significantly more mature, with consumers developing greater appreciation for quality, variety and the overall coffee experience. As the market evolves, we see a substantial headroom to grow the category, introduce more consumers to quality coffee and create new occasions around coffee consumption.’’

Brand’s Future Plans

Rajat concludes by outlining the brand’s future plans, sharing its ambition to be at the forefront of shaping the evolution of coffee culture in India.

‘‘Our long-term vision is to build Third Wave Coffee into one of India’s most loved and scaled coffee brands, while playing a meaningful role in shaping the evolution of India’s coffee culture….Our ambition is to be at the forefront of that journey, combining great coffee with differentiated food, experiences and formats that resonate with the evolving Indian consumer,’’ signs off Rajat.