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Popular bakery chain Theobroma, which got its start in Mumbai and is famous for its decadent chocolate brownies, is reportedly nearing a significant acquisition deal, with a remarkable valuation of ₹3,500 crore. If this deal reaches the projected figure, it will set a new record, marking one of the largest cash exits by founders in India.
According to a report by The Economic Times, ChrysCapital is on the verge of acquiring both Theobroma Foods and Belgian Waffle Co, with a combined valuation estimated at around ₹3,200-3,500 crore. Venture capitalist Aviral Bhatnagar shared on X (formerly Twitter) that this acquisition could become the largest cash exit for a founder in India, signifying a monumental achievement for sisters Tina and Kainaz Messman, who established Theobroma in 2004.
"India’s largest cash exit for a founder may not be in consumer tech or fintech, but 3,500 Cr bakery Theobroma," Bhatnagar tweeted.
Theobroma currently has a staggering 225 outlets across India, began as a small, one-room venture launched by sisters Kainaz Messman Harchandrai and Tina Messman Wykes two decades ago. In her 2020 book, The Theobroma Story: Baking a Dream, Kainaz shared that the inspiration to start her own bakery stemmed from a back injury she suffered while working as a pastry chef at the Oberoi Udaivilas.
Despite the brand's almost cult-like popularity, it faced initial challenges with funding and expansion, primarily due to the high costs associated with quality products. It wasn’t until 2014 that the founders managed to secure their first loan of ₹5 crore, which allowed them to expand beyond their initial single outlet.
When the pandemic struck, Theobroma quickly adapted by boosting its online presence. By 2021, it had reportedly served 500,000 customers and expanded to 100 outlets, including its entry into Chennai. The chain brought in professional management and diversified its menu to include savoury options.
By 2023, Theobroma reportedly achieved ₹300 crore in revenue, capitalizing on the largely unorganized ₹100,000 crore bakery market, where it emerged as a leader in the organized sector. By 2024, Theobroma had expanded to 30 cities with 225 stores and was on course to reach ₹600 crore in revenue.
Kainaz trained at Le Cordon Bleu in London before working as a pastry chef at the Oberoi. Additionally, both she and her sister Tina had gained hands-on experience by assisting their mother with her small home-based baking business. The initial capital of ₹1.5 crore needed to launch Theobroma was funded by their father.
“The four of us thought starting a cafe would be more of the same, on a slightly bigger scale but not much different from what we were already doing from home. We didn’t have a business growth plan or any real plan,” Kainaz revealed in her book.
Theobroma’s journey began on Dussehra in 2004 when the sisters opened their first outlet in Mumbai’s Colaba neighbourhood. After struggling to decide on a name, a friend suggested "Theobroma," which originates from Greek. Combining 'theos' (meaning god) and 'broma' (meaning food), the name translates to "food of the gods."
The 20-year-old patisserie chain began exploring a sale process in January after its private equity investor, ICICI Venture, decided to exit. To facilitate the sale, the company brought on investment bank Arpwood Partners to identify potential buyers. Both the founder-owners and ICICI Venture, which holds a 42% stake in Theobroma, intend to sell their entire shareholding as part of the deal.
Earlier this year, Mint reported that the owners were aiming for a valuation of approximately ₹2,800 crore. ICICI Venture serves as the alternative investment arm of ICICI Bank.
