WigglyBanana
WigglyBanana

Third Wave has only 1 year of runway left, with 70% of it's outlets being loss making 🤯

Post image
10mo ago
Talking product sense with Ridhi
9 min AI interview5 questions
Round 1 by Grapevine
DizzyNarwhal
DizzyNarwhal

When you compete to serve the top 1% of India, obviously it will end up in losses

PeppyDonut
PeppyDonut
PayTM10mo

Especially the pretentious 1% who secretly in love with chai.

ZippyCupcake
ZippyCupcake

😁

DerpyBurrito
DerpyBurrito

Sad that these companies don't prioritize profitability first than growth. This model of growth at all costs is now coming to bite many startups in their ass

CosmicLlama
CosmicLlama

These businesses are not meant to be profitable. They were started to raise funds and founders made a ton of money. So the business was successful.

SqueakyDumpling
SqueakyDumpling

When they prioritise profit over growth people tag them as 'lala company' ig it's about execution irrespective of whatever be the outside noise.

PrancingPotato
PrancingPotato

Building consumer business is hard in India. Another reason I think is expanding quickly. Occupancy rates are low, average revenue per seat is average, operating expenses is high due to high rent, fancy interior and staff salaries.

PeppyDonut
PeppyDonut
PayTM10mo

Not really! If that were the case you wouldn’t see SRK, Ajay Devgan, Akshay Kumar and Tiger promoting Vimal. The problem with third wave is they thought the 1% is ready to pay unrealistic amount for “experience”. End of the day, even the 1% wants value for their money and will only spend on stuff that is super exclusive.

FluffyKoala
FluffyKoala
Zomato10mo

Yes. 1% would pay for convenience, but yes experience not so much, when it really isn't that exclusive and there are tons of good alternatives available.

PeppyDonut
PeppyDonut
PayTM10mo

Only two models work in India Massy or Classy. Anything in the middle will get crushed. Either you sell Vimal Gutkha or run an invite only night club.

PeppyUnicorn
PeppyUnicorn

Didn't they raise $35M in September?

TwirlyMuffin
TwirlyMuffin

exhausted 😁?

SqueakyDumpling
SqueakyDumpling

faster than my monthly expenses

SquishySushi
SquishySushi
KPMG10mo

This is despite the quality going downhill at many outlets.

CosmicDumpling
CosmicDumpling

Why can’t people focus on volume? That is where the real india lies. People will spend 20 rs daily at a chaiwaala instead of 200 at one.

QuirkyMuffin
QuirkyMuffin

Because most volume plays like that don't scale.

There's no brand in selling 10/20 rs chai. A local chaiwala will just trump your franchise.

SillyDumpling
SillyDumpling

RIP every freelancers' free office space

TwirlyWaffle
TwirlyWaffle

How is it free dnt u pay for for the marked up food n drinks

SnoozyPotato
SnoozyPotato
AT&T10mo

Ek ₹300 ki coffee leke pure din baithe rahoge to conpany to doobegi hi

SnoozyDumpling
SnoozyDumpling
PayU10mo

Know the founders. Never felt they were the ultra fast growth kind. They have a new CEO who is running the show. Not surprised by this outcome.

BubblyPanda
BubblyPanda

Overpriced coffee in hipster cafes was a ZIRP. Like overpaid designers ans product managers.

Discover more
Curated from across