Private Equity Firm ChrysCaptial to acquire a 90% Stake in Theobroma

ChrysCapital, a private equity firm, will acquire a 90% stake in Theobroma Foods, a bakery and food chain, for 2,410 crore, as per a report by the Economic Times. Founded in 2004 by sisters Kainaz Messaman, Harchandrai, and Tina Messman Wykes, Theobroma began with a single outlet in Cusrow Baug, Colaba Causeway, and it is widely known for its desserts and savoury delicacies like pastries, puffs and more. 

Although 90% ownership now lies with ChrysCapital, the founding family will retain around 10% equity in the company. The initial valuation was around Rs 3,000 crore; the final transaction concluded at Rs 2,410 crore. Despite the reduction, the deal is seen as a positive signal for the restaurant and cafes sector, where several high-value transactions had stalled due to low market volatility. 

While Arpwood Capital endorsed Theobroma’s promoters for the transaction, many firms, including Bain Capital, Carlyle, and the Switz Group (owner of Monginis Bakery), had also expressed keen interest. However, ChrysCapital was ultimately selected as the investor.

ChrysCapital is aiming to build a quick-service restaurant (QSR) platform with the motive to acquire marquee food brands such as Theobroma and The Belgian Waffle Co. This recent acquisition marks a step towards that goal. 

In FY25, Theobroma is expected to report revenue of Rs 525–550 crore, with EBITDA between Rs 80–100 crore. In FY24, the company reported revenue of Rs 400 crore and an adjusted EBITDA of Rs 60 crore. The company had also considered an IPO but shelved the plan amid market volatility.

Over the last 20 years, the bakery chain has opened more than 200 stores across thirty cities.