Co-Founders Anirudh Sharma and Ayush Bathwal on scaling one of India’s fastest-growing café chains and introducing specialty coffee to the domestic market.
India, despite being among the top 10 coffee-producing nations globally, has historically consumed little of its homegrown coffee. Instead, the country’s coffee beans have largely been exported, while chai remained the preferred beverage domestically. Recognizing this gap, three childhood friends—Anirudh Sharma, Ayush Bathwal, and Sushant Goel—set out to change the narrative by showcasing India’s high-quality coffee to its own people.
Founded in 2016, Third Wave Coffee began as a specialty coffee shop in Bengaluru. By October 2024, the company operates 114 cafés across India, with plans to reach 160 by the fiscal year-end and ambitions to launch 80 to 100 outlets annually from 2025.
The Quality-Driven Foundation
According to Sharma and Bathwal, maintaining the high standards upon which Third Wave Coffee was founded has been critical to its rapid success.
“We focused on quality and consistency from day one, and that remains a cornerstone of our brand,” Bathwal shared in an interview with Global Coffee Report.
During the brand’s early days, Sharma and Bathwal worked hands-on in their café, ensuring an unparalleled customer experience. “We spent 20 months on the shop floor, taking orders, brewing coffee, and even cleaning, to make sure customers were willing to try something new. This helped us build a reputation for quality coffee and food,” said Bathwal. Training remains a key focus to ensure consistency across all locations.
Inspiration and Early Challenges
Bathwal’s time in San Diego, California, sparked his appreciation for specialty coffee. “In the U.S., I saw how passionate baristas and roasters were about sourcing and elevating coffee quality. Tasting distinct coffees from around the world was an entirely new experience,” he recalled.
Returning to India, Bathwal partnered with Sharma, who had a background in hospitality, and their friend Goel. Together, they identified a market gap for specialty coffee. The trio spent a year researching the industry, understanding customer behavior, and developing a concept tailored to India’s café culture.
“We realized coffee shops in India were more than places to grab a drink—they were social spaces for meetings, studying, and relaxing. We wanted our cafés to be community hubs,” Sharma explained.
To source the best beans, the founders visited coffee farms across South India, building relationships with farmers and highlighting the untapped potential of Indian coffee.
Convincing Farmers and Customers
In the beginning, local coffee farmers were skeptical about the demand for high-grade coffee within India. “It was tough convincing them that Indians would want these nuanced, acidic coffees,” said Bathwal. Over time, the founders built trust and demonstrated that a local market for specialty coffee was viable.
Their first café in Koramangala, Bengaluru, was strategically chosen for its proximity to coffee farms. A Diedrich roaster was installed on-site, allowing customers to witness the roasting process—an innovative concept in India at the time.
“We invested in premium equipment, like a semi-automatic espresso machine, which few cafés in India had back then. This distinct approach, combined with word-of-mouth publicity, helped us gain traction,” Bathwal noted.
Scaling the Business
Expanding beyond the first café was no small feat. The second venue opened 15 months later, but ensuring consistent quality across locations proved challenging.
“We developed standard operating procedures to maintain quality and hired experienced professionals to guide us through scaling,” Sharma explained.
By 2019, Third Wave Coffee had secured external funding and expanded to 10 locations, opening a new café every 45 days. However, the COVID-19 pandemic temporarily stalled their growth.
“Despite the challenges of COVID-19, the trust customers placed in our brand was evident. Post-lockdown, we saw higher revenues than before, which boosted our confidence to seek additional investment and resume expansion,” Bathwal said.
Strategic Partnerships and Technological Innovations
To support their rapid growth, Third Wave Coffee partnered with top equipment suppliers, including Eversys, whose advanced espresso machines maintain barista-level quality.
“Switching to fully automatic machines like the Eversys Cameo was initially daunting, but it has significantly enhanced our output without compromising quality,” said Sharma.
In October 2024, the company upgraded its roasting operations to a state-of-the-art facility in Bengaluru, enabling increased production and extended bean freshness through advanced packaging technology.
A Vision for the Future
With cafés in cities from Pune to Punjab, Third Wave Coffee now roasts 10,000–15,000 kilograms of beans weekly. Plans are underway to expand into wholesale distribution, complementing their café business.
The founders remain committed to supporting local coffee farmers. “Our goal is to make India a global leader in specialty coffee production. We help farmers understand how to improve bean quality and provide feedback on their coffee,” Sharma said.
Signature offerings like the El Diablo blend have been tailored to the Indian palate, striking a balance between bitterness and acidity. Over the years, Third Wave Coffee cafés have become spaces where communities flourish—stories of friendships, marriages, and businesses originating in their stores abound.
Looking Ahead
With an ambitious target of launching 100 cafés annually, the founders believe they are poised to meet the demand for high-quality coffee across India.
“In the next decade, we want every Indian to have access to great coffee, whether in our stores, at home, or in the office,” Bathwal stated.
Third Wave Coffee is not just building a café chain; it’s shaping India’s coffee culture, one cup at a time.