ChrysCapital to Acquire 90% Stake in Theobroma for INR 2,410 Cr
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Private equity firm ChrysCapital is set to acquire a 90 percent stake in Theobroma Foods for INR 2,410 crore, according to media reports. The agreement, signed between the parties, will see ChrysCapital buying the majority stake from the promoters and existing investor ICICI Venture.
The promoters of Theobroma are expected to retain a 10 percent share in the company after the transaction. ICICI Venture, which currently holds a 42 percent stake, is anticipated to exit entirely. The venture firm had initially invested INR 130 crore in 2017 and followed it with another INR 30 crore in 2021. The latest deal is projected to yield ICICI Venture a return nearly three times its total investment.
The deal was finalised at a valuation lower than earlier estimates, attributed to Theobroma's muted financial performance in recent quarters. Despite this, the development is viewed as a positive sign for the dining and quick service restaurant segment, where many potential deals have stalled amid uncertain market conditions.
Theobroma had drawn early interest from other potential investors, including Bain Capital, Carlyle, Blackstone, and the Switz Group, which operates the Monginis bakery chain. Arpwood Capital advised the promoters during the course of the transaction.
Founded in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma began as a single outlet in Mumbai's Colaba Causeway. Over the years, it has expanded to 200 stores across more than 30 cities in India, offering a variety of baked goods, including brownies, cakes, breads, and snacks.
Theobroma is expected to report revenue in the range of INR 525 to INR 550 crore in the current financial year, with estimated EBITDA between INR 80 to INR 100 crore. In the previous year, it recorded revenue of INR 400 crore with an adjusted Ebitda of INR 60 crore. The company had previously considered a public listing but postponed the plan due to market volatility.
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