**ChrysCapital Set to Acquire Controlling Stake in Theobroma Foods**
ChrysCapital, a homegrown private equity firm, is on the verge of acquiring a controlling stake in Theobroma Foods, a prominent bakery chain, for approximately ₹2,200-2,300 crore. This deal marks the exit of ICICI Venture, which has been invested in Theobroma since 2017. The founder, Kainaz Messman, and her family are expected to retain around 10% of the 194-store bakery network.
### Deal Overview
– **Who**: ChrysCapital and Theobroma Foods
– **What**: Acquisition of a controlling stake
– **When**: Expected to finalize within two weeks
– **Where**: Theobroma Foods operates primarily in Mumbai and has expanded to Delhi-NCR
– **Why**: To facilitate growth and expansion of the bakery chain
### Background of Theobroma Foods
– Founded in 2004 by Kainaz Messman, a former pastry chef at Oberoi Hotels, Theobroma started as a single outlet in Mumbai’s Colaba Causeway.
– ICICI Venture acquired a significant minority stake in 2017 for about $20 million, which was used to expand the brand’s presence in key markets.
### Financial Insights
– Theobroma’s revenue for FY24 is reported at $54.6 million, an increase from $41 million in FY23.
– ICICI Venture currently holds around 42% of the bakery chain.
### Competitive Landscape
– Other private equity firms, including Bain Capital and Carlyle Group, expressed interest in acquiring Theobroma but faced delays due to valuation disagreements.
– ChrysCapital has re-engaged with Theobroma’s management and is proceeding with the deal at a valuation lower than previously anticipated.
### Market Potential
– This acquisition will be ChrysCapital’s first foray into the consumer foods sector, having previously invested in companies like Wow Skin Care and FirstCry.
– The Indian bakery market is projected to reach $13.8 billion by 2024, indicating significant growth potential.
**Conclusion**: With ChrysCapital’s acquisition, Theobroma Foods is poised for further expansion in the booming bakery market. How will this change the landscape of the Indian bakery industry?
**FAQ**:
**What is the expected valuation for the acquisition of Theobroma Foods?**
The expected valuation for the acquisition is between ₹2,200-2,300 crore.
