Third Wave Coffee, a coffee chain company has laid off more than 100 employees despite recently securing $35 million in funding, news website ENTRACKR reported.  

The Bengaluru-based company, known for its handpicked coffee and curated food menu, has cafes in various Indian cities.  

The layoff comes as a surprise, as the company had raised over $60 million in the past 24 months and planned to expand with additional outlets. This move follows a trend where some companies, even after securing substantial funding, opt for layoffs. The brand is facing competition from brands like Blue Tokai, Sabko Coffee, and others. 

According to sources quoted by Moneycontrol, Third Wave Coffee has laid off employees from various sectors, including tech, finance, marketing, business development, and apps. The start-up, backed by Unacademy co-founder and CEO Gaurav Munjal, will reportedly provide two months' salary to the affected employees. In a statement, a spokesperson for Third Wave Coffee mentioned that after a strategic review, the company has decided on a one-time restructuring exercise to consolidate teams, affecting less than 10 percent of the organization. 

Sushant Goyal, co-founder of Third Wave Coffee, has expressed that the quick-service restaurant market in India is rapidly emerging. He has also highlighted the company's impressive growth five times in the last year and the rapid expansion of its chains. This news comes at a time when Third Wave Coffee's competitor, Blue Tokai, recently secured a $30 million investment from Deepika Padukone. Goyal emphasised the company's commitment to continued innovation in the coffee market through technology in the coming times. 

In the past year, Third Wave Coffee has expanded its number of stores to 100. The company currently has outlets in several major cities, including Bengaluru, Mumbai, Delhi, Gurugram, Pune, Hyderabad, Noida, Coonoor, and Chandigarh.