In a move that could reshape India’s dessert landscape, ChrysCapital is all set to acquire two famous bakery and dessert chains, Theobroma Foods and Belgian Waffle Co, in a combined deal valued at approximately Rs 3,200-3,500 crore.
The private equity firm will create an investment platform to bring these beloved bakeries under its umbrella. The company has a 60-day window to submit a binding offer for Theobroma Foods and aims to finalize the terms for Belgian Waffle Co’s owner, Bloombay Enterprises, within 30 days.
Competing Bids and Existing Shareholders
Theobroma Foods’ acquisition has attracted significant interest from multiple investors, including food giant Switz Group and private equity firms Kedaara Capital, Carlyle, and ChrysCapital. The patisserie chain is backed by ICICI Venture, which holds a 42% stake. Prior reports indicated that Belgian Waffle Co. was nearing acquisition by ChrysCapital after submitting a binding bid to acquire the promoters’ and PE investor Marathon Edge Partners’ stakes.
ChrysCapital’s Expansion Plans
ChrysCapital, actively fundraising for its tenth fund, aims to create an investment platform that will combine Theobroma and Belgian Waffle. This strategic move aligns with the firm’s focus on technology and consumer-oriented small and mid-market businesses.
Theobroma: A Sweet Success Story
Founded in 2004, Theobroma has become a household name in India for its delectable pastries, cakes, and cookies. After a flagship store in Mumbai, the chain has expanded rapidly across the country. With its strong brand recognition and loyal customer base,
Theobroma’s acquisition is a strategic move for ChrysCapital. Established in 2004, Theobroma Foods has witnessed substantial growth and expansion. The patisserie chain operates approximately 220 stores and delivery-only outlets across 27 cities in India. The company’s strong financial performance, with an estimated FY24 adjusted EBITDA of Rs 60 crore on a topline of Rs 380-400 crore, has attracted significant investor interest.
| Theobroma | |
| Founded in | 2004 |
| Footprint Stores | 220 |
| Citywide Presence | 27 |
Belgian Waffle: A Rising Star
Founded in 2015, Belgian Waffle has rapidly expanded its presence in the Indian market for innovative waffle creations. The company has demonstrated impressive growth with over 560 smaller-format stores and kiosks in 190 cities. In FY23, Belgian Waffle reported a revenue of Rs 150 crore, a significant increase from Rs 46 crore the previous year. ChrysCapital’s acquisition of Belgian Waffle Co. is expected to accelerate its expansion further and reach. The chain is likely to be bought for Rs 1,000 crore.
| The Belgian Waffle Co. | |
| Founded in | 2015 |
| Footprint Stores & Kiosks | 560 |
| Citywide Presence | 190 |
ChrysCapital’s Ambitions Amid a Growing Market
ChrysCapital, a leading private equity firm, is known for its successful investments in various sectors. The company’s decision to acquire Theobroma and Belgian Waffle Co. reflects its confidence in the Indian food and beverage market. By combining these two strong brands, ChrysCapital aims to create a dominant player in the dessert segment. The acquisition comes amidst a growing trend of global food, café, and patisserie brands entering or expanding their presence in the Indian market. The Indian food services market is estimated to reach Rs 7.76 lakh crore by FY28, driven by a rising middle class, changing consumer preferences, and the increasing popularity of food delivery platforms. The acquisition of Theobroma and Belgian Waffle Co. aligns with ChrysCapital’s strategy to capitalize on this expanding market.
Conclusion
ChrysCapital’s acquisition of Theobroma and Belgian Waffle represents a significant step in consolidating India’s bakery and dessert market. The deal reflects the growing demand for high-quality food and beverage experiences and the potential for substantial growth in the Indian food services sector. As these two prominent brands come under the umbrella of ChrysCapital, it is anticipated that they will continue to innovate and expand their reach, further shaping the landscape of the Indian food industry.
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FAQ
What is the estimated valuation of the combined deal for Theobroma and Belgian Waffle Co.?
The combined deal is valued at approximately Rs 3,200-3,500 crore.
When is ChrysCapital expected to submit a binding offer for Theobroma Foods?
ChrysCapital has a 60-day window to submit a binding offer for Theobroma Foods.
Who is the current majority shareholder of Theobroma Foods?
ICICI Venture is the current majority shareholder of Theobroma Foods.
What is the estimated growth rate of the Indian food services market?
The Indian food services market has been growing significantly, driven by a rising middle class, changing consumer preferences, and the increasing popularity of food delivery platforms. It is estimated to grow at an 8.1% compound annual growth rate between 2024 and 2028.
What is ChrysCapital’s strategic objective in acquiring Theobroma and Belgian Waffle?
ChrysCapital aims to create an investment platform combining these two brands, leveraging their strengths and expanding their reach in the Indian market.
I’m Archana R. Chettiar, an experienced content creator with
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