ChrysCapital to acquire 90 % stake in Indian bakery chain Theobroma for Rs 2,410 crore: Report

ChrysCapital has reportedly agreed to acquire a 90% stake in Theobroma Foods, the popular pan-India bakery chain, for Rs 2,410 crore, according to media reports.

The deal, signed between ChrysCapital and Theobroma’s promoters and current investor ICICI Venture, marks one of the largest recent bets on India’s quick-service restaurant (QSR) segment. The founders of the company, which began as a single café in Mumbai’s Colaba Causeway in 2004, will retain about 10% equity, the report said.

ICICI Venture, which acquired a 42% stake in Theobroma for $20 million (about Rs 130 crore) in 2017, is exiting the company entirely. The transaction values the bakery chain below its earlier ask of Rs 3,000 crore, a revision reportedly prompted by recent underwhelming financial results. Discussions between ChrysCapital and Theobroma had stalled for over six weeks before resuming earlier this year.

Despite the markdown, the deal is being viewed as a critical precedent for other high-value transactions in the dining and cafe space, many of which have remained stalled amid macroeconomic uncertainty and cautious consumer spending.

Theobroma’s sale attracted interest from multiple suitors, including Bain Capital, Carlyle, and Switz Group, the family-run company behind Monginis. Arpwood Capital advised Theobroma’s promoters on the transaction.

Founded by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma began as a family-run patisserie and has since scaled to over 200 stores across more than 30 Indian cities. Known for its brownies, cakes, and artisanal desserts, the company has evolved into a household name in the urban premium bakery category.

Theobroma is expected to report revenue of Rs 525 crore to Rs 550 crore in FY25, with an EBITDA in the range of Rs 80 crore to Rs 100 crore.

According to data intelligence platform Tracxn, Theobroma’s revenue rose steadily from Rs 107.7 crore in FY20 to Rs 451.6 crore in FY24, a compound annual growth rate of 27% over the last year and 54% over three years.

The company’s bottom line has also turned around sharply. After reporting losses of Rs 11.3 crore in FY20 and Rs 11 crore in FY22, Theobroma swung to profits of Rs 19.6 crore in FY23 and Rs 27.8 crore in FY24. Over the last three years, net profit has grown at a compound annual rate of 151%.