Private equity firm ChrysCapital is close to acquiring homegrown desserts chain The Belgian Waffle Co., three people aware of the development said, in a deal that values the nine-year-old company at ₹1,300 crore.
ChrysCapital has already submitted a binding bid to buy out promoters and PE investor Marathon Edge Partners, said one of the three people cited above, all of whom spoke on the condition of anonymity.
“ChrysCapital is in advanced talks to acquire Belgian Waffle. They have submitted binding bids already,” the first person said.
In 2021, former Bain Capital executive Nikhil Raghavan’s investment firm Marathon Edge Partners had acquired a near 22% stake in the company for $8-10 million, VCCircle had reported.
Founded by the husband-wife duo Shrey and Alisha Aggarwal in 2015, The Belgian Waffle Co. is owned and operated by Bloombay Enterprises Pvt. Ltd. It runs more than 560 stores across 190 Indian cities. It also sells a range of ready-to-eat and easy-to-make products such as waffle crisps, spreads and pancake and waffle premixes.
When contacted, Shrey Aggarwal said: “We have no comments to offer at this point.”
Company in profit
In FY23, the company reported consolidated revenue of ₹150 crore, up from ₹46 crore a year ago, according to data from business intelligence platform Tofler. It also earns revenues via franchising fees. Total profit in FY23 was up over 200% to ₹21.19 crore, from ₹6.72 crore in FY23. The company has not disclosed FY24 financials.
India’s food services industry continues to buzz with hectic merger and acquisition activity, as investors eye big gains in a market that’s set for furious expansion.
According to a report released by food aggregator Swiggy and consulting firm Bain & Company on Wednesday, the market for eating out and ordering in is set to nearly double by the end of the decade to ₹9 trillion, from the current ₹5.5 trillion, driven by an expanding customer base, rising consumption occasions, and a jump in the number of new eateries in India.
According to the study, around 70% of the total food services consumption in the country happens across India’s top 50 cities, and among upper-middle and high-income segments. These cities are expected to remain demand hotspots even in the medium term.
Significant investor interest
The consumer segment, especially the food and beverages space, is seeing significant investor interest. The owners of Haldiram Snacks Pvt. Ltd are considering an initial public offering (IPO) for the food producer and restaurant operator after plans to sell to foreign investors stalled, Bloomberg reported in June. Earlier, private equity firms Blackstone, Temasek Holdings and Bain Capital were looking to buy at least 51% in the company at a valuation of $8-10 billion.
In January, Mint reported that promoters and investors of Theobroma Foods have begun talks with merchant bankers to sell their shares in the 20-year-old patisserie chain at a valuation of around ₹2,800 crore. Similarly, Morgan Stanley’s private equity arm has been looking to sell all or part of its stake in Manna Foods as the business has struggled to grow sustainably and increase profits in recent years, Mint reported on 18 August. Soulfull, one of Manna’s competitors, was acquired by Tata in February 2021.
Other companies such as Curefoods, Rebel Foods, Eatfit, Cakezone among others are also reportedly in talks to raise capital from risk investors, highlighting the high growth potential of the segment.
