The Theobroma story: Sers behind ₹3,500 crore bakery eye India’s largest cash exit | Trending

Bakery chain Theobroma is reportedly in the final stages of being acquired at a staggering valuation of ₹3,500 crore. If Theobroma’s proposed deal achieves its target valuation, it could surpass previous records and potentially set a new benchmark for cash exits founders in India. Bakery chain Theobroma was founded sers Tina and Kainaz Messman in 2004 The Economic Times has reported that ChrysCapital is close to acquiring Theobroma Foods and Belgian Waffle Co for a total valuation of around ₹3,200-3,500 crore. According to Aviral Bhatnagar, investor with A Junior VC, the Theobroma acquisition could become India’s largest cash exit for a founder, making a monumental milestone for sers Tina and Kainaz Messman who launched the bakery in 2004. The Theobroma storyTheobroma, today a bakery chain with 225 outlets across India, started as a one-room enterprise sers Kainaz Messman Harchandrai and Tina Messman Wykes 20 years ago. In her 2020 book “The Theobroma Story: Baking a Dream,” Kainaz revealed that the idea of starting her own bakery came after she sustained a back injury while working as a pastry chef at the Oberoi Udaivilas. Kainaz had the necessary experience for the ‘kitchen’ part of her bakery – she trained at Le Cordon Bleu in London before joining the Oberoi. Moreover, the two sers had also grown up helping their mother in her small, home-run baking business. The necessary capital of ₹1.5 crore to launch the business was provided 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. Their first outlet opened on Dussehra 2004 in Mumbai’s Colaba area. The name “Theobroma” was suggested a friend after the two sers struggled to name their business. Theobroma is derived from the Greek words ‘theos’ (god) and ‘broma’ (food). It translates to ‘food of the gods’. From one-room bakery to national chainAt a time when the baking scene in India was not as ‘elevated’ as it is today, Kainaz and Tina Messman managed to find a niche with urban youngsters who wanted European-style brownies and desserts that did not hurt the pocket. Starting in a city with few high-quality bakeries, they filled a market gap with a focus on premium ingredients and accessible luxury. Despite rapid popularity, Theobroma initially struggled with funding and expansion due to the high upfront costs of maintaining quality. It took until 2014 for the founders to secure their first loan of ₹5 crore, which enabled them to grow beyond their single outlet. Now valued at ₹3,500 crore, Theobroma is drawing interest for a potential acquisition, with ICICI Ventures potentially reaping substantial returns. If sold, the founders could secure one of India’s largest cash exits for a bakery chain, a testament to their successful journey from a one-room bakery to a national powerhouse.