ChrysCapital to acquire 90% stake in Theobroma for Rs 2,410 crore; ICICI venture exits after 7 years: Report

Time of India

15-07-2025

(Image credit: TheoBroma website)
ChrysCapital, a domestic private equity firm, has reached an agreement to purchase Theobroma Foods, a nationwide bakery chain, for Rs 2,410 crore, according to informed sources, quoted by Economic Times.
The transaction involves ChrysCapital acquiring approximately 90% ownership from the current promoters and ICICI Venture, whilst the promoters will maintain a 10% stake in the business.
ICICI Venture currently owns 42% of Theobroma, which it acquired in 2017 for $20 million (equivalent to Rs 130 crore then).
According to ET report in March, ChrysCapital recommenced negotiations to acquire Theobroma at a reduced price from the initial Rs 3,000 crore valuation sought by the founding family and shareholders.
The talks, which had paused for approximately six weeks due to underwhelming financial performance, resumed recently. No official announcement has come with regards to the acquisition yet.
"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," said a source, directly involved in the matter, to ET.
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Several similar transactions and negotiations are currently suspended, awaiting market improvement.
Initial interest in Theobroma was expressed by other potential buyers including Bain Capital, Carlyle, and the Khorakiwala family's Switz Group, which manages the Monginis bakery chain. The promoters received advisory services from Arpwood Capital for this transaction.
ET initially reported on September 27 about ChrysCapital's interest in establishing a quick-service restaurant platform through acquisitions including Theobroma and The Belgian Waffle Co.
Sisters Kainaz Messman Harchandrai and Tina Messman Wykes established the privately-owned Theobroma, launching their first outlet in 2004 at Cusrow Baug, Mumbai's Colaba Causeway. Their website indicates 200 stores across over 30 cities, offering various baked goods and confections.
ET sources suggest Theobroma's projected revenue for FY25 is Rs 525-550 crore with an Ebitda of Rs 80-100 crore. FY24 saw an adjusted Ebitda of Rs 60 crore on Rs 400 crore revenue.
Earlier IPO plans were postponed due to market instability.
India's restaurant and café sector is experiencing renewed deal activity following five quarters of reduced consumer spending.
Recent developments include Devyani International's acquisition of controlling interest in Sky Gate Hospitality (Biryani By Kilo), while Wow! Momo secured ₹150 crore from Haldiram's promoter Kamal Agrawal and Malaysia's Khazanah Nasional.
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