ChrysCapital to acquire 90% stake in Theobroma for ₹2,410 crore

Private equity firm ChrysCapital has signed an agreement to acquire a 90% stake in Theobroma Foods, the well-known bakery and café chain, for ₹2,410 crore, according to reports.

As part of the transaction, ChrysCapital will purchase the majority stake from Theobroma’s promoters and existing investor ICICI Venture. The founding family is expected to retain approximately 10% ownership in the company, sources familiar with the matter said.

ICICI Venture currently holds a 42% stake in Theobroma. The firm had invested $20 million (around ₹130 crore) in 2017.

Deal Structure and Valuation

Negotiations between ChrysCapital and Theobroma resumed earlier this year after a temporary pause of about six weeks, reportedly due to weaker-than-expected financial performance. While the promoters and investors initially sought a valuation of ₹3,000 crore, the final deal was concluded at ₹2,410 crore.

Despite the lower-than-expected valuation, the deal is being viewed as a positive development for the restaurant and café sector, where several transactions had stalled amid market uncertainties. Industry insiders noted that the deal may set a precedent for a revival in high-value transactions in the dining space.

Arpwood Capital is said to have advised Theobroma’s promoters on the deal. ChrysCapital, ICICI Venture, and Theobroma have reportedly declined to comment on the development.

Several other investors had shown interest in acquiring Theobroma, including global private equity firms Bain Capital and Carlyle, as well as Switz Group, which owns the Monginis bakery chain. However, ChrysCapital ultimately emerged as the successful bidder.

Strategic Expansion Plans

The acquisition is expected to play a key role in ChrysCapital’s broader plan to create a quick-service restaurant (QSR) platform. The firm is reportedly exploring further acquisitions in the food and beverage sector, including brands like The Belgian Waffle Co., in an effort to strengthen its presence.

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. The brand has since grown to over 200 stores in more than 30 cities across India. It is widely known for its brownies, cakes, desserts, breads, snacks, and chocolates.

Theobroma is projected to report revenue of ₹525–550 crore in FY25 with an EBITDA of ₹80–100 crore. In FY24, it posted revenue of ₹400 crore and adjusted EBITDA of ₹60 crore, according to sources.

The company had previously considered going public through an initial public offering (IPO), but those plans were put on hold due to volatile market conditions.