🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Third Wave Coffee’s scale grows 4.5X to Rs 144 Cr in FY23

EntrackrEntrackr · 1y ago
Third Wave Coffee’s scale grows 4.5X to Rs 144 Cr in FY23
Medial

Coffee chain firm Third Wave Coffee secured $35 million led by homegrown private equity firm Creaegis in September last year. The funding was followed by its notable growth in scale during FY23. Third Wave’s revenue from operations surged 4.5X to Rs 144 crore in the fiscal year ending March 2023 as compared to Rs 32 crore in FY22, its annual financial statements filed with the Registrar of Companies show. Just like StarBucks, Third Wave Coffee offers curated food menus and handpicked coffee, and has over 90 cafes across Hyderabad, Coonoor, Bengaluru, Delhi (NCR), Mumbai, Chandigarh, and Pune. The firm claims to have about 109 stores, of which 50% are operational in Bengaluru. Income from the sale of coffee and food items were the two revenue sources for TWC. The firm also made Rs 2 crore from the interest on bank deposits which took its total income to Rs 147 crore in FY23. For Third Wave Coffee, its employee benefits emerged as the largest cost center accounting for 28.8% of the firm’s overall expenditure. This cost surged 3.8X to Rs 58 crore in FY23 from Rs 15 crore in FY22. Third Wave Coffee’s costs of procurements (coffee and food materials), rent, legal, freight-logistics, marketing, and other overheads took its total expenditure to Rs 201 crore in FY23 from Rs 47 crore in FY22. See TheKredible for the detailed expense breakup. Expenses Breakdown Total ₹ 47 Cr https://thekredible.com/company/third-wave-coffee/financials View Full Data To access complete data, visithttps://thekredible.com/company/third-wave-coffee/financials Total ₹ 201 Cr https://thekredible.com/company/third-wave-coffee/financials View Full Data To access complete data, visithttps://thekredible.com/company/third-wave-coffee/financials Cost of materials consumed Cost of materials consumed Employee benefit Employee benefit Rent Rent Legal professional Legal professional Travelling conveyance Travelling conveyance Transportation distribution Transportation distribution Discounting charges Discounting charges Selling and marketing Selling and marketing Others To check complete Expense Breakdown visit thekredible.com View full data The increase in employee benefits and rent led its losses to increase 3.6X to Rs 54 crore in FY23 from Rs 15 crore in FY22. Its ROCE and EBITDA margin improved to -38% and -25.9% respectively. On a unit level, TWC spent Rs 1.40 to earn a rupee in FY23. Third Wave has raised over $66 million to date including its $35 million Series C round in September last year. According to the startup data intelligence platform TheKredible, WestBridge Capital is the largest external stakeholder with 32.62% followed by Creaegis. As per Fintrackr’s estimates, its enterprise value to revenue multiple is 8.86X as of FY23. FY22-FY23 FY22 FY23 EBITDA Margin -38% -25.9% Expense/₹ of Op Revenue ₹1.47 ₹1.40 ROCE -47% -38% Towards the end of current fiscal year (FY24), Third Wave Coffee went through a tough phase as it laid off more than 100 employees soon after the $35 million fundraise. The company’s chief executive Sushant Goel also moved to a board role and Rajat Luthra, former head of KFC India and Nepal, was appointed as the new CEO. Goel had 7.89% stake in Third Wave Coffee. It competes with Blue Tokai, Sabko Coffee, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co., among others. Its closest competitor Blue Tokai registered Rs 129 crore in revenue with Rs 42 crore loss in FY23. While the mushrooming of coffee chains is not a surprise considering the rapid urbanization and aspirational whiffs around these, the sector has an unusual amount of volatility for the hospitality segment. Coffee chains by default seek the premium end of the market, leaving an opportunity for smaller setups to grab share in the lower price points, and perhaps even eventually add lower priced coffee to their offerings. Doing it all with an aura of cool can be a deadly combination for the newer coffee chains, and something they should watch out for.

Third Wave Coffee revenue crosses Rs 240 Cr in FY24, losses up 2X

EntrackrEntrackr · 8m ago
Third Wave Coffee revenue crosses Rs 240 Cr in FY24, losses up 2X
Medial

Coffee chain Third Wave Coffee seems to be utilizing the VC funds the right way as the company managed to grow its scale at a scorching pace in the past couple of fiscal years: Its revenue from operations surged Rs 241 crore in the fiscal year ending March 2024 from Rs 32 crore in FY22. When it comes to year-on-year growth, Third Wave Coffee’s revenue from operations grew 67% to Rs 241.3 crore in FY24 as compared to Rs 144.4 crore in FY23, the company’s standalone financial statement sourced from the Registrar of Companies shows. The company is in the business of process, producing, packing, preserving, extracting, refining, buying, selling, and dealing in coffee and food products in and outside India. Third Wave Coffee made its entire revenue from sales of these products. Its products include coffee bags, coffee beans, and cold brews. As of October, the company has 114 cafes in India and plans to reach 160 by the end of the ongoing fiscal year (FY25). It is also looking to launch 80 to 100 coffee shops annually from 2025. The company claims that they’re roasting around 10-15k kilograms of beans per week. Other than its core business, the company also earned a non-operating income of Rs 6.61 crore during the year via interest and gains on assets. Overall, it made a revenue of Rs 247.9 crore during the last fiscal year. On the expense side, employee benefits turned out to be the largest cost element forming 27% to the total expenditure. This cost surged 68.8% to Rs 97.26 crore in FY24. The cost of materials doubled to Rs 87.61 crore while the company paid rent worth Rs 81.25 crore during the year. Importantly, the company spent only Rs 11.65 crore on selling and marketing. In the end, the company’s overall expenses went up 78% to Rs 358 crore in FY24 from Rs 201 crore in FY23. Despite the healthy growth in scale, the losses of the firm spiked over 2X to Rs 110 crore in FY24, which can be attributed to the excessive cash burn during the year, especially on employee costs and rent. Meanwhile, its operating cash outflows also rose 33% to Rs 81.57 crore. Its EBITDA margin and ROCE stood at -35.52% and -35.28%, respectively. On a unit level, Third Wave Coffee spent Rs 1.48 to earn a rupee of operating revenue in the last fiscal year. The company’s current assets jumped more than 5X to Rs 223.2 crore during the year while cash and bank balances grew multiple times to Rs 120.4 crore in FY24 from Rs 8.06 crore in FY23. At the end of FY24, Third Wave Coffee’s outstanding losses mounted to Rs 192 crore. As per TheKredible, the Bengaluru-based company has raised around $65 million to date from WestBridge Capital, Creaegis, and Redbrook, among others. It raised $35 million in funding in September 2023 and was valued at around $155 million (post-money). Third Wave Coffee competes with Subko Coffee, Sleepy Owl, Blue Tokai, Rage Coffee, Slay Coffee, and abCoffee among others. While the wave of Coffee sellers has made it a buyers market in some ways, coffee continues to chase the kind of premium buyer whose numbers remain a matter of conjecture in many ways. The low advertising and promotion costs indicate a smart hack, because it clearly hasn’t impacted growth, but the big challenge remains building the kind of loyalty that drives volumes at a steady clip, when aligned with planned expansion of the network. Like all retail businesses in India, the impact of rent remains disproportionate, and offers no relief really in a market that is still overheated, if not as piping hot as some of the coffee Third Wave offers. The path to profitability remains distant for now, even as Third Wave’s regular customers should be reassured that their preferred chain has enough runway to serve them for some time yet. Importantly, the chain seems to have done enough to raise a fresh round if the need arises.

Sushant Goel steps down as Third Wave Coffee CEO; Rajat Luthra to replace him

EntrackrEntrackr · 1y ago
Sushant Goel steps down as Third Wave Coffee CEO; Rajat Luthra to replace him
Medial

Third Wave Coffee’s co-founder and chief executive officer Sushant Goel has stepped down as the firm’s CEO role and transitioned to a board member. KFC India and Nepal CEO Rajat Luthra will replace Goel, effective from the first quarter of the next fiscal year (FY25). The development has come after six months of the firm’s $35 million worth Series C round. Sushant will continue to contribute towards the growth and development of the rapidly expanding Indian coffee brand, the company said in a press release. Luthra is a veteran across FMCG and QSR sectors with over three decade experience. He has been driving Kentucky Fried Chicken (KFC) India & Nepal operations for over the past 10 years. Founded by Ayush Bathwal, Anirudh Sharma and Goel, Third Wave claims to have over 100 outlets across Delhi (NCR), Bengaluru among others. It raised $35 million from Creaegis and WestBridge Capital in Sep 2023. According to startup data intelligence platform TheKredible, WestBridge is the largest stakeholder in the company with 32.62% followed by the three co-founder who command 26.03%. Creaegis holds 13.61 % whereas Udaan’s co-founder Sujeet Kumar has 5.64% stakes. Third Wave is yet to report FY23 financials but its operating revenue grew 2.3X to Rs 31.75 crore in FY22. Its losses soared 3.3X to Rs 14.5 crore in the same period (FY22).

Blue Tokai raises $35 Mn in Series C led by Verlinvest

EntrackrEntrackr · 10m ago
Blue Tokai raises $35 Mn in Series C led by Verlinvest
Medial

Global investment platform Verlinvest has led a $35 million round in specialty coffee and bakery brand Blue Tokai. Existing investors Anicut Capital and A91 Partners also joined the Series C funding. This strategic partnership will enable Blue Tokai to deepen its presence in existing metro markets and expand into new tier I and tier II cities in India over the next three years, the company said in a press release. In January 2023, Blue Tokai raised $30 million in its Series B funding round led by A91 Partners. Led by co-founders Matt Chitharanjan, Namrata Asthana, and Shivam Shahi, Blue Tokai has partnered with several retail outlets, luxury hotels, restaurants, top corporates, and co-working spaces, among others. In the past 12 months, the company claims to have more than doubled its store count to 130 outlets. The funds will also be used to expand to over 350 locations in the next 30-36 months. Blue Tokai’s revenue from operations surged 72% to Rs 127.45 crore in FY23 from Rs 74 crore in FY22. According to startup data intelligence platform TheKredible, its losses also increased nearly 3.5-fold to Rs 43 crore in FY23, compared to Rs 12.3 crore in FY22. The company is yet to file its annual report for FY24. It competes with Rage Coffee, Third Wave Coffee Roasters, Slay Coffee, Sleepy Owl, and Seven Beans Co., among others. Among venture-funded startups, Third Wave Coffee was the largest brand in terms of revenue in FY23. However, the firm also experienced layoffs of more than 100 employees shortly after a $35 million fundraise in September last year. In March this year, Third Wave Coffee’s CEO Sushant Goel was replaced by Rajat Luthra from KFC. Earlier this week, GRM Overseas acquired a 44% equity stake in Rage Coffee through a combination of primary infusion and secondary buyouts.

Sugar Cosmetics reports Rs 505 Cr revenue and Rs 76 Cr loss in FY24

EntrackrEntrackr · 8m ago
Sugar Cosmetics reports Rs 505 Cr revenue and Rs 76 Cr loss in FY24
Medial

Following a 90% year-on-year growth during FY23, the direct-to-consumer (D2C) beauty brand Sugar Cosmetics saw a modest 20% growth in March 2024. The company reported a revenue of Rs 505 crore and a loss of Rs 76 crore for FY24. Advertising costs were Rs 162 crore, with total revenue reaching Rs 515 crore. The cost of procurement was Rs 138 crore, and total expenditure amounted to Rs 584 crore. The company managed to reduce its losses by 11.4%. The Return on Capital Employed (ROCE) was -31.87%, and the EBITDA margin stood at -9.22%. Unit spending was Rs 1.16. Current assets were valued at Rs 302 crore, with cash and bank balances of Rs 54 crore. Sugar Cosmetics has raised a total funding of $85 million, with the last funding round being $50 million. The company is valued at an estimated $700-800 million and is considering an IPO.

Download the medial app to read full posts, comements and news.