Bakery chain Theobroma is reportedly in the final stages of acquisition, with a staggering valuation projected at ₹3,500 crore. If successful, this deal could set a new benchmark for cash exits by founders in India, surpassing previous records.
According to The Economic Times, ChrysCapital is close to finalizing the acquisition of Theobroma Foods, along with Belgian Waffle Co, for a combined valuation ranging from ₹3,200 crore to ₹3,500 crore. Aviral Bhatnagar, an investor with A Junior VC, stated that this acquisition could become the largest cash exit for a founder in India, marking a significant milestone for sisters Tina and Kainaz Messman, who established Theobroma in 2004.
Theobroma has evolved from a one-room bakery to a national chain boasting 225 outlets across India. Sisters Kainaz Messman Harchandrai and Tina Messman Wykes launched the bakery two decades ago, driven by Kainaz’s experience and passion for baking.
In her 2020 book, The Theobroma Story: Baking a Dream, Kainaz shared that the bakery idea emerged after she sustained a back injury while working as a pastry chef at Oberoi Udaivilas. With training from Le Cordon Bleu in London and support from their mother’s small home-run baking business, the sisters secured ₹1.5 crore in capital from their father to launch Theobroma.
The first outlet opened in Mumbai’s Colaba area on Dussehra in 2004. Struggling to name their venture, a friend suggested “Theobroma,” derived from Greek, meaning “food of the gods.”
At a time when India’s baking scene was still developing, Kainaz and Tina identified a niche catering to urban youngsters craving affordable European-style brownies and desserts. They prioritized premium ingredients and accessible luxury, quickly gaining popularity.
However, despite their success, Theobroma faced challenges with funding and expansion due to high upfront costs associated with maintaining quality. It wasn’t until 2014 that the founders secured their first loan of ₹5 crore, which enabled them to expand beyond their initial outlet.
Now valued at ₹3,500 crore, Theobroma is attracting significant interest for a potential acquisition. If the sale proceeds, the founders stand to achieve one of the largest cash exits for a bakery chain in India. This development serves as a testament to their remarkable journey from a modest one-room bakery to a national powerhouse in the baking industry.
