Startup Roundup, Amid ‘Funding Winter’ Three Startup’s -Third Wave Coffee, Oorja, and DecorTwist Up The Game By Securing Funding for Growth
In the current scenario where many startups are still grappling with the challenges of a 'funding winter,' a period marked by tightened investor purse strings and heightened competition, three remarkable companies have managed to defy the odds. Third Wave Coffee, Oorja, and DecorTwist have not only weathered this financial chill but have also successfully secured significant investments to fuel their respective growth journeys.
Third Wave Coffee, Oorja And DecorTwist Outpower The ‘Funding Winter’
Third Wave Coffee, a coffee chain company, has successfully raised $35 million in its recent Series C funding round, with the primary investment coming from Creaegis, a prominent private equity firm; notably existing investors, including WestBridge Capital and Sujeet Kumar, co-founder of Udaan, also participated in this financing round.
This significant development was confirmed through an official press release issued by Third Wave Coffee; the infusion of capital will be directed towards the company’s expansion efforts across the country, enhancing its supply chain operations and making strategic investments in technology.
While specific details regarding the company’s valuation were not disclosed, it is estimated that the company’s valuation stands at approximately $150 million (Rs 1,200 crore).
Third Wave Coffee, founded six years ago, is known for its coffee offerings, curated food menu, and carefully selected coffee beans. The company currently operates cafes in various Indian cities, including Hyderabad, Coonoor, Bengaluru, Delhi (NCR), Mumbai, Chandigarh, and Pune.
The company boasts around 105 stores, with 50% of them currently operational in Bengaluru, and future plans are in place to open an additional 50-60 stores this year, focusing on both metro and tier I cities.
Established by Ayush Bathwal, Anirudh Sharma, and Sushant Goel, Third Wave Coffee previously raised $6 million in a series A funding round in December 2021.
In May 2022, WestBridge Capital led a $21 million Series B investment in the Bengaluru-based company; before this recent funding round, Westbridge held the largest stake at 26.19%, while the three co-founders collectively possessed 33.19%, as per data from startup intelligence platform TheKredible.
While Third Wave Coffee has yet to release its FY23 financial figures, it reported impressive growth in operating revenue, with a 2.7X increase to Rs 31.75 crore in FY22; however, the company’s losses also surged, rising 3.3X to Rs 14.5 crore during the same period in FY22, according to TheKredible.
Notably, this marks the second investment made by Creaegis within a week of launching its maiden fund worth $426 million for Indian startups. Earlier, Creaegis backed Doceree, a network of physician-only platforms for programmatic messaging. The firm’s portfolio includes notable companies such as Medikabazaar, Zopper, and Kale Logistics.
In terms of competition, Third Wave Coffee has to battle renowned coffee chains like Starbucks and specialized coffee brands such as Blue Tokai, Sabko Coffee, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co., among others.
In January, Blue Tokai raised $30 million in its Series B funding round, led by A91 Partners.
Oorja, a Deep Tech Startup, Secures $1.5 Million in Funding
Oorja, a deep tech startup, has secured $1.5 million in a pre-Series A funding round, with Micello Fund leading the investment; Capital-A, Java Capital, Anicut Capital, and Lead Angels also participated in this funding round.
Notably, Capital A, an early-stage focused fund, had previously made a strategic investment in Oorja through its $10 million cleantech fund Evolve.
The company plans to utilize the funds to further develop its product and expand its presence into the European and North American markets.
The company was founded by Vineet Dravid in 2022 and employs a combination of physics and machine learning to perform predictive modelling; the company specializes in providing battery design solutions to electric vehicle manufacturers, excelling in predicting accurate battery life, optimizing pack design, and saving costs and time.
Oorja also participates in the Indian Science Technology Engineering Facilities Map (ISTEM) program, granting students from over 800 colleges across India access to its application suite for research and education; additionally, oorja has received the SISFS grant.
The company is based in Bengaluru and asserts that it serves more than 15 customers spanning Asia and Europe. Other notable companies operating in the deep tech space include CogKnit, Streamoid, Photom, Jumper.ai, Cognitifai, and others.
Home Decor Startup DecorTwist Raises $250,000 in Seed Funding
Home decor brand DecorTwist successfully raised $250,000 in a seed funding round, with angel investor Adhvith Dhuddu leading the investment.
DecorTwist, in an official press release, stated that the capital injection will be used to expand DecorTwist’s product line, enhance its marketing outreach, and facilitate growth into the B2B segment.
Co-founded by Anupam Rajey and Nidhi Bajpai in March 2022, DecorTwist offers a diverse range of home products, including dining, decor, gardening, furniture, pooja essentials, and gifting, all under one roof.
Initially started as a bootstrapped venture, DecorTwist has experienced significant growth, witnessing a 2.5-fold increase in the number of orders and doubling its team and headcount within just 1.5 years from its inception.
In the home decor space, DecorTwist competes with Pepperfry, Nestasia, Woodenstreet, HomeTown, and others; in addition to its own website, DecorTwist also distributes its products through e-commerce marketplaces such as Amazon.
Serial investor Adhvith Dhuddu has previously backed startups like California Burrito, Wrap2Earn, CarterX, and others across various sectors, including F&B, adtech, and logistics.
The Last Bit: In the midst of a challenging funding climate, these startups have secured vital financial backing and heightened competition in their respective sectors.
Third Wave Coffee’s infusion of $35 million in Series C funding, led by Creaegis, paves the way for expansion and technological advancements, solidifying its presence in the competitive coffee chain market.
Oorja’s $1.5 million pre-Series A funding, guided by Micello Fund, positions it for international expansion and continued advancements in predictive battery technology.
DecorTwist’s $250,000 seed funding, driven by angel investor Adhvith Dhuddu, empowers its growth in the home decor segment and reinforces its position among industry competitors.
