Cookies, cakes & stakes: Theobroma may change hands
₹1,200 crore, a third person said the chain’s founding family plans to exit as well. The owners expect a valuation of around ₹2,800 crore for the company, the people said on condition of anonymity. Theobroma Foods Pvt.
Ltd was founded by former Oberoi Hotels pastry chef Kainaz Messman. Its first pastry store opened in Mumbai’s Colaba Causeway in 2004; for long, it operated as a single-outlet, family-run business. ICICI Venture first bought a significant minority share in the food services company in 2017, committing about $20 million.
The funds were allocated in two equal tranches, of which the first tranche was used to expand the brand to Delhi-NCR, and expand its presence in Mumbai and Pune. Theobroma has since grown to become a pan-India chain of patisseries with 194 stores. The promoters and ICICI Venture have met several merchant bankers, but are yet to finalize one.
A formal sale process is yet to be launched. “The valuation is steep, but ICICI Venture is confident of getting around ₹1,200 crore for its 42% stake given the strong brand and business they have built," one of the two people cited above said on condition of anonymity, adding that the transaction may value Theobroma at over ₹2,800 crore. However, according to the third person, a deal could take six to nine months to conclude.
“The transaction is still some time away as the company’s FY24 financials are awaited. The process has entered exit mode, but they have not yet pressed the exit button," this person added. The second person said other private equity firms may look to snap up ICICI Venture’s stake in the patisserie chain.
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