Homegrown private equity major ChrysCapital is set to acquire a controlling stake in Theobroma, the premium bakery chain known for its brownies and patisserie offerings, in a deal valued at Rs 2,410 crore, The Economic Times has reported.
The fund will reportedly pick up close to 90% of the company by buying out both the founding Wykes family and early backer ICICI Venture, while the remaining 10% stake is expected to be retained by existing shareholders.
This transaction not only gives ChrysCapital a high-visibility foothold in India’s fast-growing QSR (quick-service restaurant) and premium food retail segment, but also marks its second major consumer investment this year, following a strategic bet on ethnic snacking brand Bikaji in March.
Bake sale with a big return
ICICI Venture, which invested around Rs 30 crore in Theobroma in 2021, is poised to triple its investment through the exit, underlining the increasing appetite from PE firms for scalable, brand-forward food businesses. The deal, though reportedly closed at a slightly lower valuation than initially discussed, due to softer recent financials, is seen as a positive signal for big-ticket M&A in India’s consumer and food services space, which has otherwise seen several deals stall amid uncertain market sentiment.
From Colaba to ChrysCapital
Founded in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma has grown from a single café in Mumbai’s Colaba to over 150 outlets across 10 Indian cities. The brand is expected to maintain its independent identity and operations post-acquisition. FY24 revenues are estimated at Rs 400 crore, projected to rise to Rs 550 crore in the coming year, with an EBITDA of Rs 80–100 crore.
Bakery bidding war
Theobroma’s popularity had drawn the interest of Blackstone, Carlyle, and Switz Group (which owns the Monginis brand), with Switz reportedly partnering with GIC for its bid. Ultimately, ChrysCapital emerged as the frontrunner, advised by Arpwood Capital on the deal.
The move aligns with ChrysCapital’s broader strategy of building a robust QSR and foodservice portfolio. As previously reported, the fund has been evaluating brands such as Theobroma and The Belgian Waffle Co., eyeing a combined play in the Rs 3,500 crore range. For Theobroma, it’s a new chapter—but one baked with promise.