Private equity major ChrysCapital has acquired a 90% stake in premium bakery chain Theobroma Foods for ₹2,410 crore, marking one of the largest transactions in India’s café and QSR space in recent times. The promoters of Theobroma will retain the remaining 10% stake, while ICICI Venture, which currently holds a 42% share, will exit the business.
Theobroma, which began in 2004 as a quaint bakery in Mumbai’s Colaba, has since grown into a nationwide chain with over 200 outlets across more than 30 cities. Known for its brownies, cakes, pastries, and café offerings, the brand is expected to generate ₹525-550 crore in revenue in FY25, with an EBITDA of ₹80-100 crore.
ChrysCapital’s entry comes at a time when the food services sector is witnessing renewed investor interest after a slowdown caused by inflation and reduced consumer discretionary spending. Industry insiders say the Theobroma deal could reignite momentum for similar transactions that have been on pause.
“The deal, even though closed at a lower valuation than the ₹3,000 crore originally expected by promoters, is being seen as a precedent for revival of high-value investments in the dining and café segment,” said a person directly aware of the deal. Theobroma’s FY24 revenue stood at around ₹400 crore, with an adjusted EBITDA of ₹60 crore.
Sources also revealed that the deal had initially attracted interest from Bain Capital, Carlyle, and the Switz Group (owner of the Monginis bakery chain), but ChrysCapital emerged as the frontrunner. Arpwood Capital acted as advisor to the promoters during the transaction.
In 2017, ICICI Venture had invested ₹130 crore (approximately $20 million at the time) to acquire a significant stake in Theobroma. While the company had explored a public listing, market volatility led to a deferral of those plans.
This acquisition aligns with ChrysCapital’s broader ambition to create a quick-service restaurant (QSR) platform, with reported interest in other brands such as The Belgian Waffle Co. already underway.
Neither ICICI Venture nor Theobroma commented on the deal. A ChrysCapital spokesperson also declined to make a statement.
Analysts suggest the successful closure of the Theobroma deal could serve as a bellwether for India’s food services sector, which is slowly recovering from five tepid quarters. With valuations correcting and consumer footfall returning to cafés and QSRs, more private equity players may follow ChrysCapital’s lead.