Theobroma to be sold, Rs 2,410-crore sweet deal baked by ChrysCapital: Report

India Today

15-07-2025

Private equity firm ChrysCapital has agreed to acquire a 90% stake in Theobroma Foods, the popular pan-India bakery chain, for Rs 2,410 crore, reported The Economic Times (ET). As per the agreement, ChrysCapital will buy the majority stake from Theobroma's promoters and its existing investor ICICI Venture. The founding family will retain around 10% stake in the company, people familiar with the matter told ET.ICICI Venture currently owns 42% in Theobroma. It had invested $20 million in 2017, which was around Rs 130 crore at the time.DEAL STRUCTURE AND VALUATIONTalks between ChrysCapital and Theobroma resumed earlier this year after being paused for nearly six weeks due to weak financial performance. Initially, the promoters and investors had sought a valuation of Rs 3,000 crore, but the final deal was signed at Rs 2,410 crore.While the final price is lower than what was first expected, the transaction is being seen as a positive sign for the restaurant and cafes sector, where several deals had been on hold due to market uncertainty.'Even though the Theobroma deal has been signed at a lower valuation compared to what was brought on the table first, it's being seen as a precedent for revival of high-value transactions in the dining and cafes sector,' a person directly involved in the discussions told ET.Arpwood Capital advised the promoters on the deal. ChrysCapital, ICICI Venture, and Theobroma declined to comment, according to ET.Theobroma had attracted interest from several other big names. Global investment firms like Bain Capital and Carlyle, and Switz Group, the owner of the Monginis bakery chain, had also shown interest earlier in the process, but ChrysCapital eventually emerged as the buyer.ChrysCapital is reportedly looking to build a quick-service restaurant (QSR) platform. As reported by ET earlier, it is planning to acquire popular food brands such as Theobroma and The Belgian Waffle Co. to expand its footprint in the sector.This deal with Theobroma is expected to be a key part of that strategy.Founded in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma began with a single outlet at Cusrow Baug on Mumbai's Colaba Causeway. Over the last 20 years, the brand has expanded to more than 200 stores across over 30 cities.Theobroma is known for its popular brownies, cakes, desserts, breads, snacks, and chocolates.According to people quoted by ET, Theobroma is projected to post a revenue of Rs 525–550 crore in FY25 with an EBITDA of Rs 80–100 crore. In FY24, it reported revenue of Rs 400 crore and adjusted EBITDA of Rs 60 crore.The company had also considered launching an initial public offering (IPO), but delayed the plan due to volatile market conditions.- Ends
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