ChrysCapital's Strategic Acquisition

In a significant move that underscores the vibrancy of India's cafe and bakery sector, ChrysCapital, a leading domestic private equity firm, has finalized an agreement to acquire a 90% stake in Theobroma Foods for Rs 2,410 crore. This transaction not only highlights the firm's confidence in the sector but also marks the exit of ICICI Venture after a seven-year investment period.

The Deal's Details

The deal structure involves ChrysCapital purchasing the majority stake from the current promoters and ICICI Venture, with the promoters retaining a 10% stake in the business. ICICI Venture, which held a 42% stake in Theobroma acquired in 2017 for $20 million, sees a profitable exit from this transaction.

Market Implications

This acquisition is seen as a bellwether for the revival of high-value transactions in the dining and cafes sector, especially after a period of subdued activity due to market fluctuations. Theobroma, with its 200 stores across over 30 cities, represents a strong growth story in India's organized food retail space.

Future Prospects

With projected revenues of Rs 525-550 crore for FY25 and an Ebitda of Rs 80-100 crore, Theobroma is poised for further expansion under ChrysCapital's stewardship. This deal also reflects the growing investor interest in India's quick-service restaurant and cafe sector, signaling a positive outlook for similar transactions in the near future.