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Time of India
2 days ago
- Business
- Time of India
ChrysCapital to acquire 90% stake in Theobroma for Rs 2,410 crore; ICICI venture exits after 7 years: Report
(Image credit: TheoBroma website) ChrysCapital, a domestic private equity firm, has reached an agreement to purchase Theobroma Foods, a nationwide bakery chain, for Rs 2,410 crore, according to informed sources, quoted by Economic Times. The transaction involves ChrysCapital acquiring approximately 90% ownership from the current promoters and ICICI Venture, whilst the promoters will maintain a 10% stake in the business. ICICI Venture currently owns 42% of Theobroma, which it acquired in 2017 for $20 million (equivalent to Rs 130 crore then). According to ET report in March, ChrysCapital recommenced negotiations to acquire Theobroma at a reduced price from the initial Rs 3,000 crore valuation sought by the founding family and shareholders. The talks, which had paused for approximately six weeks due to underwhelming financial performance, resumed recently. No official announcement has come with regards to the acquisition yet. "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 revival of high-value transactions in the dining and cafes sector," said a source, directly involved in the matter, to ET. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Several similar transactions and negotiations are currently suspended, awaiting market improvement. Initial interest in Theobroma was expressed by other potential buyers including Bain Capital, Carlyle, and the Khorakiwala family's Switz Group, which manages the Monginis bakery chain. The promoters received advisory services from Arpwood Capital for this transaction. ET initially reported on September 27 about ChrysCapital's interest in establishing a quick-service restaurant platform through acquisitions including Theobroma and The Belgian Waffle Co. Sisters Kainaz Messman Harchandrai and Tina Messman Wykes established the privately-owned Theobroma, launching their first outlet in 2004 at Cusrow Baug, Mumbai's Colaba Causeway. Their website indicates 200 stores across over 30 cities, offering various baked goods and confections. ET sources suggest Theobroma's projected revenue for FY25 is Rs 525-550 crore with an Ebitda of Rs 80-100 crore. FY24 saw an adjusted Ebitda of Rs 60 crore on Rs 400 crore revenue. Earlier IPO plans were postponed due to market instability. India's restaurant and café sector is experiencing renewed deal activity following five quarters of reduced consumer spending. Recent developments include Devyani International's acquisition of controlling interest in Sky Gate Hospitality (Biryani By Kilo), while Wow! Momo secured ₹150 crore from Haldiram's promoter Kamal Agrawal and Malaysia's Khazanah Nasional. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India.com
2 days ago
- Business
- India.com
Rs 24100000000: Two Indian sisters set to earn huge amounts by selling their business of…, the name is…
Private equity firm ChrysCapital has finalized a deal to acquire a 90% stake in popular bakery chain Theobroma Foods for Rs 2,410 crore, according to a report by The Economic Times (ET) . As part of the agreement, ChrysCapital will purchase the majority stake from both the founding promoters and existing investor ICICI Venture. The Messman family, who founded the brand, will continue to hold approximately 10% stake in the company, According to a report by ET. Who Founded Theobroma? Kenaz and Tina Messman, the sisters behind Theobroma, have built one of India's most iconic bakery chains. They started as a small home-based venture in Mumbai in 2004 has today turned into a major bakery brand with over 225 outlets across India. The journey began when Kenaz Messman-Harchandrai, a trained pastry chef from Le Cordon Bleu, London, was forced to leave her job at Oberoi Udaivilas due to a back injury. Alongside her sister Tina Messman-Viaks, the duo turned their passion for baking into a full time business. They didn't have a formal business plan but had dedication. They opened the first Theobroma outlet on Dussehra in 2004 in Colaba, Mumbai. What Theobroma Means? The name Theobroma means 'Food of the Gods,' derived from the Greek words theos (god) and broma (food) was suggested by a friend and it captured the premium experience the sisters wanted to offer. At a time when India's bakery industry was still new, Theobroma became a unique brand with its European-style brownies, desserts, and cakes which appealed to the younger, urban crowd. Their focus on quality ingredients and accessible luxury gave them loyal followers. What Are Challenges For Theobroma? However, the business came with challenges. Initial funding came from their father, who invested Rs 1.5 crore. A decade later, in 2014, the sisters took their first loan of Rs 5 crore to support expansion beyond their first outlet. Today, Theobroma is a household name, with a strong pan-India presence. Investment firm ChrysCapital is reportedly close to acquiring both Theobroma Foods and Belgium Waffle Co., marking one of the largest cash exits by founders in Indian business history. If finalized, this deal would represent a major milestone not just for the Messman sisters but also for India's evolving F&B and entrepreneurial landscape.
India Today
2 days ago
- Business
- India Today
Baked with love, valued in crores: The Theobroma story
Theobroma, the iconic bakery brand that introduced India to brownies and cakes with a European flair, is set for a major a milestone in the journey of a business that began as a one-room kitchen in south Mumbai, private equity giant ChrysCapital has agreed to acquire a 90% stake in the company for Rs 2,410 crore, reported the Economic in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma grew from a modest Colaba cafe into a 225-store pan-India chain, serving everything from gooey brownies and buttery croissants to puffs, sandwiches, and festive cakes. Now, it's become the latest darling of India's fast-evolving food and beverage sector, attracting investor interest from global heavyweights like Bain Capital and Carlyle before ChrysCapital finally emerged as the winning bidder. The deal will see ChrysCapital buy out Theobroma's promoters and existing investor ICICI Venture, which had invested Rs 130 crore in the brand in 2017. The founding Messman family is expected to retain around 10% stake in the BAKING AT HOME TO BOARDROOM INTERESTIn her 2020 memoir 'The Theobroma Story: Baking a Dream', Kainaz Messman recounted how a back injury while working as a pastry chef at the Oberoi Udaivilas forced her to rethink her career. A Le Cordon Bleu-trained ptissire, she joined forces with her sister Tina and drew inspiration from their mother's home-run baking with seed capital of Rs 1.5 crore provided by their father, the duo opened their first caf on Colaba Causeway during Dussehra in 2004. It was initially seen as a small step up from their home kitchen - but it would soon snowball into something far name "Theobroma," meaning 'food of the gods', was suggested by a friend, and it quickly became synonymous with indulgent treats and an elevated but affordable dessert experience. View this post on Instagram A post shared by Theobroma Patisserie India (@theobromapatisserie)At a time when India's caf and bakery scene was still developing, Theobroma struck gold with its soft-centred brownies, gooey tarts, and rich cakes-bringing European-style desserts to a younger, aspirational audience without premium pricing. That formula, combined with a sharp focus on quality and consistency, helped the brand build a fiercely loyal customer base, according to BIG BET ON QSRChrysCapital's acquisition of Theobroma is part of its broader strategy to create a powerful quick-service restaurant (QSR) portfolio. The fund has also been in talks to buy other high-growth food brands such as The Belgian Waffle Co., and its latest move signals growing investor appetite for scalable, consumer-facing businesses in the final valuation, Rs 2,410 crore, was lower than the Rs 3,000 crore initially sought, the deal is being hailed as a much-needed boost for the F&B sector. According to people familiar with the discussions, conversations had paused for nearly six weeks earlier this year due to weak financials but resumed after adjustments."This is being seen as a precedent for revival of high-value deals in the dining and caf space," a person involved in the transaction told *ET*.Theobroma is expected to clock Rs 525-550 crore in revenue and Rs 80-100 crore in EBITDA in FY25. In FY24, it posted Rs 400 crore in revenue and Rs 60 crore brand had previously explored going public, but volatile market conditions delayed its IPO SETS THEOBROMA APARTWhat sets Theobroma apart is its ability to thrive in a space where others have stumbled. American bakery chains like Au Bon Pain exited India after struggling to crack the model, as per on the other hand, scaled by tweaking its product strategy. It gradually reduced the number of highly perishable baked goods on its menu and increased its focus on items with slightly longer shelf lives - brownies (up to five days), sandwiches (one day), and puffs (same day). It also built regional commissaries to maintain freshness across its stores, with Bengaluru alone housing two units to serve over two dozen outlets. View this post on Instagram A post shared by Theobroma Patisserie India (@theobromapatisserie)advertisementThis operational control, combined with brand loyalty, made the company attractive to investors. According to market intelligence firm Tracxn, Theobroma's revenue multiples (7-9X) are now on par with other high-growth food ventures like Blue Tokai, Chaayos, and Wow! rise is a story of taste meeting timing. Its founders didn't have a business plan - just a passion for baking and a belief that quality desserts could be made accessible. That belief turned into a Rs 2,410 crore business in two decades.- EndsMust Watch
Indian Express
2 days ago
- Business
- Indian Express
Theobroma patisserie chain, built by Mumbai-based sisters, eyes Rs 2,410 crore deal with ChrysCapital
Pan-India patisserie chain Theobroma, founded by Mumbai-based sisters Kainaz Messman Harchandrai and Tina Messman Wykes, is likely to be acquired by private equity firm ChrysCapital for Rs 2,410 crore. According to The Economic Times, the homegrown private equity firm will reportedly purchase nearly 90 per cent of the company from its founding promoters, the Wykes family, and existing investor ICICI Venture. The remaining 10 per cent stake is expected to remain with the current shareholders. Born in a small kitchen in Colaba at a neighbour's request, Theobroma — Greek for 'Food of the Gods' — was founded in 2004 by the two sisters. It began as a modest café with just four tables in Mumbai's Colaba and has since grown into a leading patisserie chain with presence in over 30 cities across India. What makes Theobroma's journey exciting is the fact that it is a story of a family coming together and turning their dreams into reality. Kainaz, often described as the soul of Theobroma, began baking as a child, helping her mother, who ran a home-bakery called Not Just Desserts. A trip to France at 16 proved to be a turning point, inspiring her to pursue the culinary arts. She later graduated from Institute of Hotel Management (IHM) Mumbai and the Oberoi Centre of Learning and Development (OCLD) in Delhi, and went on to work as a pastry chef at the Oberoi Udaivilas. In 2004, she launched Theobroma as a cosy neighbourhood coffee shop in Colaba. The second outlet opened in Bandra in 2010 — and the rest, as they say, is history. Today, Theobroma is a household name, with its signature brownies becoming a mainstay across India.
Entrepreneur
2 days ago
- Business
- Entrepreneur
ChrysCapital to Acquire 90% Stake in Theobroma for INR 2,410 Cr
The agreement, signed between the parties, will see ChrysCapital buying the majority stake from the promoters and existing investor ICICI Venture. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Private equity firm ChrysCapital is set to acquire a 90 percent stake in Theobroma Foods for INR 2,410 crore, according to media reports. The agreement, signed between the parties, will see ChrysCapital buying the majority stake from the promoters and existing investor ICICI Venture. The promoters of Theobroma are expected to retain a 10 percent share in the company after the transaction. ICICI Venture, which currently holds a 42 percent stake, is anticipated to exit entirely. The venture firm had initially invested INR 130 crore in 2017 and followed it with another INR 30 crore in 2021. The latest deal is projected to yield ICICI Venture a return nearly three times its total investment. The deal was finalised at a valuation lower than earlier estimates, attributed to Theobroma's muted financial performance in recent quarters. Despite this, the development is viewed as a positive sign for the dining and quick service restaurant segment, where many potential deals have stalled amid uncertain market conditions. Theobroma had drawn early interest from other potential investors, including Bain Capital, Carlyle, Blackstone, and the Switz Group, which operates the Monginis bakery chain. Arpwood Capital advised the promoters during the course of the transaction. Founded in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, Theobroma began as a single outlet in Mumbai's Colaba Causeway. Over the years, it has expanded to 200 stores across more than 30 cities in India, offering a variety of baked goods, including brownies, cakes, breads, and snacks. Theobroma is expected to report revenue in the range of INR 525 to INR 550 crore in the current financial year, with estimated EBITDA between INR 80 to INR 100 crore. In the previous year, it recorded revenue of INR 400 crore with an adjusted Ebitda of INR 60 crore. The company had previously considered a public listing but postponed the plan due to market volatility.
