Popular bakery chain Theobroma Foods is set to get a new majority owner as private equity firm ChrysCapital has decided to buy a 90% stake in the company. According to The Economic Times, ChrysCapital will pay Rs 2,410 crore for this deal.

ChrysCapital will buy this majority stake from the company’s promoters (the founding family) and from ICICI Venture, which is an existing investor. The founding family of Theobroma will still keep around 10% of the shares in the company. ICICI Venture currently owns 42% of Theobroma. It had invested $20 million (about Rs 130 crore at that time) back in 2017.

How the deal happened

The discussions between ChrysCapital and Theobroma started again earlier this year. Talks were paused for about six weeks because Theobroma was facing weak financial performance. Initially, the owners and investors were hoping to sell the company for around Rs 3,000 crore. But finally, the deal was agreed at a lower price of Rs 2,410 crore.

Although the price is lower than what was expected at first, experts see this deal as a good sign for the restaurant and cafe industry. Due to market uncertainty, many big deals had been put on hold, so this move shows confidence returning to the sector.

A person directly involved in the deal told ET that even though the valuation was cut, this sale could help revive other high-value deals in the dining and cafe sector. The promoters were advised by Arpwood Capital. ChrysCapital, ICICI Venture, and Theobroma did not comment on the deal.

Other big investors were also interested in Theobroma. Companies like Bain Capital, Carlyle, and Switz Group (which owns Monginis bakery) had shown interest earlier. But in the end, ChrysCapital was chosen. ChrysCapital plans to build a large quick-service restaurant (QSR) platform. They are looking to buy well-known food brands like Theobroma and The Belgian Waffle Co. to expand their reach in India.

About Theobroma

Theobroma was started in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes. Their first shop opened in Mumbai’s Colaba area. Over the past 20 years, Theobroma has grown a lot and now has more than 200 stores in over 30 cities across India.

Theobroma is famous for its brownies, cakes, desserts, breads, snacks, and chocolates. In the financial year 2025, Theobroma is expected to earn a revenue of Rs 525–550 crore and an EBITDA (a measure of profit) of Rs 80–100 crore. In FY24, it had revenue of Rs 400 crore and an EBITDA of Rs 60 crore. The company had also planned to launch an IPO (initial public offering) but decided to delay it because of unstable market conditions. This new deal with ChrysCapital is expected to help Theobroma grow even more in the coming years.