The Sweet Deal: How Theobroma’s Rs 2,410 Crore Sale Signals a Revival in India’s F&B Sector

In a significant development that's shaking the Indian food and beverages sector, private equity group ChrysCapital has invested in Theobroma Foods for a 90% stake at Rs 2,410 crore. The iconic bakery chain, which is popular all over India for its rich brownies and cakes, is now an important puzzle piece in ChrysCapital's emerging plan to create a quick-service restaurant (QSR) empire in the country.

But this is a story more than numbers. It's a story of resilience, strategic timing, and the rise of a born-in-Kansas brand that began small and went national.

A Humble Beginning

Theobroma was founded in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes. Their first outlet opened in a modest space in Mumbai’s Colaba. Back then, it was just a small bakery trying to make a mark in a city full of culinary competition.

It was a decade before they even managed to secure their first major loan of Rs 5 crore in the year 2014. That financial injection propelled the brand to expand its operations outside Mumbai. Jump ahead to 2025, and Theobroma has more than 225 stores in over 30 cities in India.

The word "Theobroma" is from Greek and translates to "food of the gods." And that's quite appropriate, as the brand has become a familiar household name, especially with urban millennials and sweet-toothed individuals.

The Deal Details

ChrysCapital has bought its share from both the ICICI Venture and the founding family. The ICICI Group's venture capital business had acquired a 42% stake in Theobroma in 2017 for approximately Rs 130 crore. Although the founding family parted with a portion of its stake, it retained approximately 10% of the business.

The sellers were initially expecting a valuation of about Rs 3,000 crore. But after the talks were stalled for some time and the financial performance was re-evaluated, the transaction was ultimately concluded at Rs 2,410 crore. Although that is lower than the initial asking price, it is still regarded as a strong deal and a positive sign for the rest of the food and hospitality space.

More Than Just a Sale

This is not an isolated deal for ChrysCapital. The firm is said to be planning to scale up a broader QSR platform and has also been looking at other food chains like The Belgian Waffle Co. With Theobroma as a flagship, ChrysCapital hopes to corner a larger part of India's increasing demand for quick, quality dining out.

The timing of the transaction is also intriguing. Numerous prospective M&A deals in the restaurant and café sector had been deferred in light of market volatility and soft consumer sentiment. Market observers expect the deal to trigger a spate of similar investments as the market stabilizes further and consumer demand continues to recover.

What Lies Ahead

For Theobroma, the sale introduces new capital and strategic direction that will fuel its next leg of growth. More outlets, new products, or even a future IPO may be in store, though only time will tell. What is certain is that Theobroma has a lot more story yet to write.

For the Indian F&B industry, this transaction is about more than a high-value deal. It represents investor faith in homegrown brands, the robustness of the consumer market, and increasing demand for high-quality dining experiences.

From one store in Colaba to being bought out for Rs 2,410 crore, Theobroma's story is a textbook case of how passion, perseverance, and intelligent scaling can convert a small enterprise into a national nameplate.