ICICI Venture to Offload Entire 42% Stake in Theobroma, Eyes Valuation of Rs 2,800 Crore

ICICI Venture is set to divest its entire 42% stake in Theobroma Food Pvt Ltd, the well-known patisserie chain that has become a household name for its delectable offerings. Talks with merchant bankers, along with fellow promoters and investors, are underway, projecting a substantial valuation of Rs 2,800 crore for the 20-year-old establishment.

At this estimated valuation, ICICI Venture’s stake is anticipated to fetch approximately Rs 1,200 crore. The transaction is anticipated to unfold over the next six to nine months, pending the release of the company’s financials for the fiscal year 2023-24.

Founded in Mumbai in 2004 by Kainaz Messman, a former pastry chef at Oberoi Hotels, Theobroma started as a single-outlet venture. Over the years, it has burgeoned into a network of 194 outlets across the country, celebrated for its diverse menu featuring brownies, crackers, cookies, pastries, and sandwiches.

While Theobroma had 50 outlets primarily in Mumbai and Delhi before the pandemic, its post-pandemic strategy witnessed expansion into new cities such as Pune, Hyderabad, Bengaluru, Chandigarh-Mohali, Chennai, and Surat. In the financial year 2022-23, the patisserie chain rebounded impressively, recording a net profit of Rs 19.59 crore, a remarkable turnaround from the net loss of Rs 11 crore in FY22.

ICICI Venture entered Theobroma’s narrative in 2017 by acquiring a stake with a commitment of $20 million. The infusion of funds facilitated the chain’s nationwide expansion. ICICI Venture, the alternative investment arm of ICICI Bank, has a diversified investment portfolio that includes key players like Go Fashion India, Metropolis Health Services, and Bharat Biotech.