SUMMARY
- Third Wave Coffee’s revenue from operations has surged by 67% to Rs 241.3 crore in FY24.
- Its total expenses rose by 78% to Rs 358 crore in FY24.
- The company’s losses more than doubled, reaching Rs 110 crore in FY24.
Third Wave Coffee‘s revenue from operations has surged by 67% to Rs 241.3 crore in FY24 from Rs 144.4 crore, according to the company’s financial statements from the Registrar of Companies. Notably, the company had posted Rs 32 crore revenue in FY22.
The company engages in the production, packaging, sales and distribution of coffee and food products both domestically and internationally. Its primary source of income comes from these sales activities, which include coffee bags, beans, and cold brews.
As of October, the coffee chain operates 114 cafes across India and aims to expand to 160 by the close of FY25. The company is also planning to open 80 to 100 coffee shops annually starting in 2025. It claims to roast approximately 10 to 15k Kg of coffee beans each week.
Third Coffee Wave generated additional income of Rs 6.61 crore from interest and gains on its assets during the year. Overall, it recorded a revenue of Rs 247.9 crore in the year under review.
Further, the cost of employee benefits emerged as the largest expense category, accounting for 27% of the total costs, which increased by 68.8% to Rs 97.26 crore in FY24. The material cost also doubled to Rs 87.61 crore, and the company spent Rs 81.25 crore on rent over the year.
The Bengaluru-based company spent Rs 11.65 crore on its selling and marketing activities. Its total expenses rose by 78% to Rs 358 crore in FY24 from Rs 201 crore in FY23.
Despite the growth, the company’s losses more than doubled, reaching Rs 110 crore in FY24, primarily due to significant cash burn, especially on employee costs and rent. The company’s cash outflows increased by 33% to Rs 81.57 crore.
Its EBITDA and ROCE margins stood at -35.52% and -35.28%, respectively. On a per-unit basis, Third Wave Coffee spent Rs 1.48 to generate a rupee of operating revenue in FY24.
The company’s current assets grew 5X to Rs 223.2 crore in FY24, while its cash and bank balances reached Rs 120.4 crore in FY24 from Rs 8.06 crore in FY23. By the end of FY24, Third Wave Coffee’s outstanding losses had risen to Rs 192 crore.
Third Wave Coffee has secured approximately $65 million funding so far from WestBridge Capital, Creaegis, Redbrook, and others. It secured $35 million in September 2023 and was estimated to be valued at $155 million post-money.
Subko Coffee, Sleepy Owl, Blue Tokai, Rage Coffee, Slay Coffee, and abCoffee are among its competitors.
