• ChrysCapital acquires 90% stake in Theobroma for Rs 2,410 crore
• ICICI Venture exits; founders retain 10% stake in the bakery chain
• Theobroma reports strong growth with FY24 profit at Rs 27.8 crore

ChrysCapital will buy 90% of Theobroma Foods, the popular Indian bakery chain, for Rs 2,410 crore, reported media. The transaction, with existing investor ICICI Venture exiting and partial dilution of the founding Messman family's holding, is one of the largest recent Indian bets in the quick-service restaurant (QSR) space. The founders of Theobroma will hold a 10% stake in the firm.

Theobroma, which began as a single café in Mumbai’s Colaba in 2004, has grown into a premium national brand with over 200 outlets across more than 30 cities. Known for its brownies, cakes, and artisanal desserts, the brand has become a household name in the urban bakery segment.

ICICI Venture, which invested a 42% stake in 2017 for around Rs 130 crore, is selling out entirely. Whereas the firm originally aimed for a Rs 3,000 crore valuation, the transaction was said to have been repriced because of weaker financial performance and wider macroeconomic conservatism. Negotiations had been languishing for more than six weeks before they were revived and agreed upon this year.

Even with the markdown, the buy is being viewed as a turning point moment for India's café and dining sector. Theobroma drew keen interest from international and domestic players like Bain Capital, Carlyle, and Switz Group, promoters of Monginis. Arpwood Capital advised the company in the deal.

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Theobroma's bottomline has witnessed a dramatic turnaround. Revenues increased from Rs 107.7 crore in FY20 to Rs 451.6 crore in FY24 and are likely to reach Rs 525–550 crore in FY25. EBITDA has been estimated at Rs 80–100 crore, whereas net profit has been raised from losses of Rs 11 crore in FY22 to Rs 27.8 crore in FY24. The bakery chain recorded a 3-year revenue CAGR of 54% and net profit CAGR of 151%, placing it among the category's strongest performers.

The historic transaction not only firms up ChrysCapital's consumer portfolio but also puts its stamp of approval on future deals in India's growing QSR and premium food services sector.