ChrysCapital set to acquire 90% stake in Theobroma

New Delhi: Homegrown private equity firm ChrysCapital is likely to acquire a 90% stake in popular bakery chain Theobroma from its promoters and existing investor ICICI Venture, in a transaction valued at Rs 2,410 crore, according to a report by The Economic Times. 

Theobroma, which began as a single-store bakery in Mumbai’s Colaba in 2004, now operates 200 outlets across 30 Indian cities.

As per the report, the promoters are expected to retain a 10% shareholding in the company. ICICI Venture currently holds a 42% stake, which it had acquired for Rs 130 crore in 2017. The deal is understood to have been renegotiated from an earlier valuation of Rs 3,000 crore initially sought by the founding family and other shareholders.

Discussions were reportedly delayed due to weaker-than-expected financial performance by Theobroma. However, a formal announcement is expected in the coming weeks. The company had also explored an initial public offering but is said to have pulled back due to market volatility.

Other potential buyers such as Bain Capital, Carlyle, and Switz Group, the parent of Monginis, had expressed preliminary interest before  re-engaged in discussions.

The development aligns with ChrysCapital’s broader strategy to establish a quick-service restaurant (QSR) platform, which includes potential acquisitions such as Theobroma and The Belgian Waffle.