ChrysCapital to acquire 90% stake in bakery chain Theobroma in US$274.7M deal
The acquisition will be carried out through ChrysCapital’s affiliates, Infinity Partners, Aqua Investments Ltd, and Atreides Investments BV.
INDIA – Private equity firm ChrysCapital has secured approval from the Competition Commission of India (CCI) to acquire a majority stake in premium bakery chain Theobroma Foods Pvt Ltd.
The deal, valued at ₹2,410 crore (US$274.7 million), is a strategic move that significantly impacts India’s fast-growing food services sector.
The acquisition will be carried out through ChrysCapital’s affiliates, Infinity Partners, Aqua Investments Ltd, and Atreides Investments BV.
The transaction involves buying out ICICI Venture’s 42% stake and a substantial portion of the promoter family’s holdings, with the founders retaining a 10% minority interest.
Founded in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma began as a single outlet in Mumbai’s Colaba and has since expanded to nearly 200 stores across 30 cities.
Known for its signature brownies and patisserie offerings, the brand has become a household name in India’s urban food landscape.
Despite the change in ownership, Theobroma is expected to maintain its independent operations.
The deal was finalized at a valuation lower than the initial ₹3,000 crore (US$341.3 million) asking price, reflecting recent financial performance.
ICICI Venture, which invested approximately ₹130 crore (US$14.79 million) in 2017, is projected to earn nearly three times its investment through this exit.
Theobroma’s revenue for FY24 stood at around ₹400 crore (US$45.5 million), with promising projections indicating growth to ₹550 crore (US$62.6 million) and an EBITDA of ₹80–100 crore (US$9.1 million).
ChrysCapital’s investment follows its earlier bet on Bikaji, signaling a strategic push into consumer-facing brands and quick-service restaurants (QSRs).
The transaction was advised by Arpwood Capital and had drawn interest from other major players, including Blackstone, Carlyle, and Switz Group.
With this acquisition, ChrysCapital aims to leverage Theobroma’s strong brand equity and expand its footprint in India’s competitive bakery and café segment.
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