Once a one-room shop built by two sisters with Rs 1 crore, turned into nearly Rs 3000 crore business in two decades, set to be sold at Rs...by this company

Private equity firm ChrysCapital has reportedly set to acquire a 90 per cent stake in pan-Indian bakery chain Theobroma Foods, reported The Economic Times. As per the agreement, the private equity firm will purchase the majority stake from ICICI Venture, which owns 42 per cent in Theobroma. The founding family has retained a 10 per cent stake in the company. 

Reportedly, the firm resumed talks for acquiring Theobroma at a price lower than Rs 3,000 crore, which was the original price, earlier this year. However, the talks paused due to weak financial performance. The final deal has been locked for Rs 2410 crore. “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 the revival of high-value transactions in the dining and cafes sector,” a source close to the development told ET. Before ChrysCapital, several other global investment firms like Bain Capital and Carlyle, and Switz Group, the owner of the Monginis bakery chain, had shown interest. 

According to reports, ChrysCapital is eyeing to build a quick-service restaurant (QSR) platform. Besides Theobroma, it is also planning to acquire The Belgian Waffle Co. to gain a foothold in the sector. 

History of Theobroma: From Rs 1 crore to Rs 400 crore 

Sisters Kainaz Messman Harchandrai and Tina Messman Wykes founded Theobroma in 2004. They began with a single outlet at Cusrow Baug on Mumbai’s Colaba Causeway, with a Rs 1 crore investment from their father. In the initial years, the company struggled with funding and expansion. They secured their first loan of Rs 5 crore in 2014. In two decades, the brand expanded with over 200 outlets across the country. The brand is known for its popular brownies, cakes, desserts, breads, snacks, and chocolates. 

According to ET reports, Theobroma is expected to rake in Rs 525–550 crore in FY25 with an EBITDA of Rs 80–100 crore. Last year, the company reported Rs 400 crore in revenue and an adjusted EBITDA of Rs 60 crore. Initially, the company was gearing up for an IPO, but later decided to hold due to market conditions. The company had also considered launching an initial public offering (IPO), but delayed the plan due to volatile market conditions.