Private equity major ChrysCapital has acquired a 90% stake in Theobroma, one of India’s most iconic bakery chains, in a deal valued at ₹2,410 crore. The acquisition includes a complete exit by ICICI Ventures, which first invested in the company in 2017, along with a partial stake sale by the promoter family. Despite the sale, the founding family will retain approximately 10% equity in the company, ensuring continuity in brand identity and operations.
Lower Valuation, Strong Strategic Fit
The transaction was finalized at a valuation lower than the initial asking price of ₹3,000 crore, with discussions spanning nearly 18 months. Nevertheless, ChrysCapital’s investment reflects growing private equity interest in India’s consumer brands sector, particularly within the fast-moving food and beverage space.
From Local Bakery to National Brand
Theobroma, meaning “Food of the Gods” in Greek, began as a single bakery in Mumbai’s Colaba neighborhood in 2004. Founded by sisters Kainaz Messman Harchandrai and Tina Messman Wykes, the venture grew out of a small family-run kitchen operation into a full-fledged national chain. Today, Theobroma operates over 225 outlets across more than 30 cities in India.
Built on Passion, Quality, and Perseverance
Kainaz, a trained pastry chef, was driven to open her own bakery after a back injury cut short her previous culinary career. The initial Colaba outlet began with just four tables and limited funding. Backed by strong family support—including their mother’s home-baking expertise—the sisters focused on delivering European-style desserts, with an emphasis on brownies, cakes, and high-quality baked goods at affordable prices.
Despite early financial hurdles, Theobroma built a loyal customer base through its consistent product quality and word-of-mouth popularity. A major breakthrough came in 2014 when the company secured a crucial loan, enabling it to expand operations beyond Mumbai and into other urban markets.
ChrysCapital’s Growing Appetite for Consumer Brands
This acquisition adds to ChrysCapital’s growing portfolio in India’s consumer-driven sectors. The private equity firm has been increasingly active in identifying strong homegrown brands with scalable business models and high brand equity. Theobroma’s wide reach, loyal customer base, and robust financial performance, estimated revenues of ₹525-550 crore in FY25 and EBITDA of ₹80-100 crore, make it an attractive investment for long-term growth.
With ChrysCapital’s backing, Theobroma is expected to accelerate its expansion plans, deepen its footprint across Tier 1 and Tier 2 cities, and potentially explore international opportunities. The deal not only cements Theobroma’s evolution from a small patisserie to a nationally loved chain, but also signals broader confidence in India’s evolving food retail market.
As consumer demand for premium yet affordable dining options rises, Theobroma’s story is emblematic of how homegrown businesses can scale while maintaining authenticity. Under its new ownership, the brand is now poised for its next phase of growth, one that could redefine the bakery landscape in India and beyond.
