Latest news with #Theobroma
Time of India
3 days ago
- Business
- Time of India
Investors seek a bite of food & beverages pie
AI image MUMBAI: A lot is happening over food. From Theobroma to Haldiram's and Biryani By Kilo, investors (investment firms and corporates alike) are lining up to take a bite of India's food (captures packaged food as well as food services like QSR) and beverages (F&B) space. A broader sluggishness in consumption had slowed down the pace of deal closures; Haldiram's and Theobroma, for instance, were in the works for a long time, but the appetite to partake of India's consumption story remains high, and deal counters seem to be buzzing. Investors are evaluating brands (deals could be in the form of funding or acquisitions of significant stakes) such as Nik Baker's and Wow! Momo, an industry source said. "There is also a QSR pizza chain based in the North which has seen some interest from investors. In the packaged food space, almost a dozen deals are in the pipeline in the ready-to-eat/ready-to-cook segments," the source said. Fireside Ventures has a very strong pipeline of food deals, partner Dipanjan Basu told TOI, whereas Belgian investor Verlinvest, which has backed brands like Blue Tokai Coffee Roasters, Lahori Zeera, and Epigamia, is set to pump in fresh follow-on funds in its existing food companies in addition to new deals, taking the total amount of India investments this year to more than the targeted $100 million. "For global investors looking to invest in India, consumer and healthcare must be on the shopping list! There is interest in performing companies, and the next couple of years should augur well for consumption given the tax breaks and factors such as the reduction in import duty for edible oil, etc. ," said Arjun Anand, managing director and head of Asia at Verlinvest. Earlier this year, Temasek, IHC (International Holding Company), and Alpha Wave Global acquired minority stakes in Haldiram Snacks Food, valuing the family-owned company at $10 billion. KFC operator Devyani International acquired a majority stake in Biryani By Kilo's parent, Sky Gate Hospitality, while most recently, ChrysCapital closed a deal to acquire a majority stake in bakery chain Theobroma Foods. Another brand, The Belgian Waffle Co., has been in the market for at least a year now, although sources have indicated that the deal is now potentially looking like a minority stake acquisition compared to a majority transaction before. "India's food space is a large industry with an attractive growth profile based on the shift from unorganised to organised. With an increase in disposable income and convenience-led multiple food options via food aggregators, Indians are eating out and ordering food more than before. "This has given opportunity to many homegrown brands to scale. As private equity investors, our endeavour is to discover market leaders that are growing at 1.5-2 times the industry growth rate," said Rajiv Batra, director and leads, investment opportunities, consumer sector at ChrysCapital. In the QSR space, interest is typically to back pan-India brands, while in the packaged food segment, regional brands are equally being looked at by investors. "In QSR, unit economics and TAM (total addressable market) are generally more attractive than the casual dining space, where returns on investments have been tepid. Investors made good returns in the QSR space," said Mayank Rastogi, markets leader, strategy and transactions practice at EY. In the food services space, IPOs have largely been the mode of exit, while in packaged food, M&A is a big theme. "FMCG players are hungry for acquisitions," Rastogi added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
6 days ago
- Business
- Time of India
ChrysCapital to acquire Theobroma: From one store to pan India bakery chain, how two sisters built Rs 2400 crore empire
Theobroma success story: In a major development in the Indian bakery market, ChrysCapital is all set to acquire 90% stake in Mumbai-based pan-India Indian bakery brand Theobroma, according to an ET report. This landmark acquisition is valued at around Rs 2,410 crore and is currently awaiting approval from the Competition Commission of India (CCI). ChrysCapital affiliates — Aqua Investments Ltd, Infinity Partners, and Atreides Investments BV — will acquire shares from Theobroma's original promoters and current investor, ICICI Venture. ChrysCapital's Big Bet on India's QSR and Café Sector This investment reflects ChrysCapital's strategic vision to expand its portfolio in India's rapidly growing quick-service restaurant (QSR) and café segment. This sector is bouncing back strongly post-pandemic and is seeing increasing demand from urban consumers. ICICI Venture, which invested in Theobroma back in 2017 by buying a 42% stake for about Rs 130 crore, will make a full exit with this transaction. The Messman Sisters to Retain Minority Stake and Operational Role Despite the majority acquisition, the Messman family, who founded Theobroma, will retain a 10% shareholding and continue to play an active role in managing operations. The CCI is reviewing the deal, and since none of the acquiring firms are involved in the bakery or food business, no competition concerns are expected. The entities clarified that there is no market overlap, and the deal won't affect fair competition in the sector. The Humble start of Theobroma Theobroma's story began in 2004 when sisters Kainaz Messman Harchandrai and Tina Messman Wykes launched a small bakery in Mumbai's Colaba. With initial funding of Rs 1.5 crore from their father, they opened their first store on the day of Dussehra. The name 'Theobroma', which means 'food of the gods' in Greek, was suggested by a friend. It perfectly captured their ambition to offer premium European-style desserts to Indian customers. A dream baked after adversity The idea for Theobroma came to Kainaz Messman Harchandrai after she suffered a back injury while working as a pastry chef at The Oberoi Udaivilas. With formal training from Le Cordon Bleu, London, and work experience at the Oberoi Hotels, she already had the skills for a gourmet bakery. Their entrepreneurial journey was inspired by their childhood — they grew up helping their mother in her small home-run baking business. But back then, the sisters never imagined that they were about to build one of the country's biggest bakery brands. Growing from local favourite to national bakery chain In the early days, Theobroma struggled with expansion and funding. Maintaining quality came with high costs, and they didn't get their first major loan of Rs 5 crore until 2014, nearly a decade after they started. Despite financial hurdles, Theobroma gained rapid popularity thanks to its signature brownies, cakes, cookies, and sandwiches. By focusing on quality ingredients and affordable pricing, the brand carved a niche among urban youth craving European-style baked goods. From just 50 stores before the pandemic, Theobroma now has 225 outlets across over 30 Indian cities, including Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Pune and Chandigarh. The brand is also a big player in online delivery platforms and food aggregators. Theobroma's financial growth and valuation According to reports, Theobroma recorded Rs 400 crore in revenue in FY24, with an adjusted EBITDA of Rs 60 crore. For FY25, it is estimated to earn between Rs 525-550 crore in revenue and an EBITDA of Rs 80-100 crore. ChrysCapital reportedly reopened acquisition talks at a price lower than the Rs 3,000 crore valuation originally sought by the promoters, finally settling at Rs 2,410 crore, as reported in ET. From brownie brand to Rs 2,400 crore empire What started as a small brownie shop run by two passionate sisters has now turned into a Rs 2,400 crore Indian bakery empire. The journey of Theobroma, driven by the dedication of Kainaz Messman Harchandrai and Tina Messman Wykes, is a true example of entrepreneurial spirit and resilience. Their story, beautifully captured in Kainaz's book, 'The Theobroma Story: Baking a Dream,' serves as an inspiration for young entrepreneurs across India. For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.
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Business Standard
16-07-2025
- Business
- Business Standard
Theobroma set for ownership change as ChrysCapital nears 90% stake buy
Three private equity firms — Aqua Investments Ltd, Infinity Partners, and Atreides Investments BV — have approached the Competition Commission of India (CCI) to acquire a stake in Mumbai-based bakery chain Theobroma Foods, according to a PTI report. Infinity Partners and Atreides Investments are affiliated with ChrysCapital. The development comes amid reports that ChrysCapital is set to acquire a 90 per cent stake in Theobroma for approximately ₹2,410 crore. The deal involves purchasing shares from both the company's promoters and current investor ICICI Venture. However, the founding family is expected to retain a 10 per cent stake post-transaction. Theobroma stake sale: Details of CCI filing In their submission to the CCI, the three firms stated: 'The proposed transaction pertains to the acquisition by the acquirers (Aqua Investments Ltd, Infinity Partners, and Atreides Investments BV) collectively, of certain equity shareholding of Theobroma.' Theobroma operates in the bakery and confectionery segment, offering products through patisseries and retail outlets across more than 30 Indian cities. It also distributes via its online platform and through third-party e-commerce channels. The applicants noted that there is no direct operational overlap between their existing businesses and Theobroma. 'The parties... do not have any direct horizontal overlaps, vertical or complementary relationships. One of the affiliates of the group to which the acquirers belong is engaged in the market for the provision of logistics services in India,' the filing said. ICICI Venture's exit ICICI Venture, which invested around $20 million in Theobroma in 2017, currently owns close to 42 per cent of the company. The current deal will result in its full exit from the business. Theobroma was founded in Mumbai in 2004 by Kainaz Messman, a former pastry chef at Oberoi Hotels. It began as a single-store bakery and has since grown into a nationwide chain of 194 outlets known for its signature brownies, cookies, crackers, pastries, and sandwiches. Before the Covid-19 pandemic, Theobroma operated just 50 stores, primarily in Mumbai and Delhi. Since then, it has significantly scaled its presence across cities such as Pune, Hyderabad, Bengaluru, Chandigarh-Mohali, Chennai, and Surat.
Time of India
15-07-2025
- 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
15-07-2025
- 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.
