ChrysCap in advanced talks to acquire Belgian company The Belgian Waffle Co

Private equity firm ChrysCapital is close to acquiring local dessert chain The Belgian Waffle Co., three people familiar with the development said, in a deal that values ​​the nine-year-old company at ₹1.3 billion rupees.

ChrysCapital has already submitted a binding offer to buy the company from developers and private equity investors Marathon Edge Partners, said one of the three people cited above, who spoke on condition of anonymity.

“ChrysCapital is in advanced negotiations to acquire Belgian Waffle. Binding offers have already been submitted,” the first person said.

In 2021, former Bain Capital executive Nikhil Raghavan’s investment firm Marathon Edge Partners had acquired a stake of around 22% in the company for between $8 million and $10 million, VCCircle reported.

The Belgian Waffle Co., founded by husband-and-wife team Shrey and Alisha Aggarwal in 2015, is owned and managed by Bloombay Enterprises Pvt. Ltd. It has over 560 stores across 190 cities in India. It also sells a range of ready-to-eat and easy-to-prepare products such as waffle chips, spreads, and pancake and waffle mixes.

When contacted, Shrey Aggarwal said, “We have no comments to offer at this stage.”

Company for profit

In fiscal year 23, the company reported consolidated revenues of ₹150 crores, compared to ₹A year ago, according to data from business intelligence platform Tofler, the company earned Rs 46 crore. It also earns revenue through franchise fees. Total earnings in fiscal 2023 are up over 200% to ₹21.19 crores, from ₹6.72 crore in FY23. The company has not disclosed its financial results for FY24.

India’s food services industry continues to see intense merger and acquisition activity as investors seek big gains in a market that is set for a furious expansion.

The market for eating out and delivery will nearly double by the end of the decade, according to a report released Wednesday by food aggregator Swiggy and consultancy Bain & Company. ₹9 billion, of the current ones ₹5.5 billion, driven by an expanding customer base, rising consumption occasions and a jump in the number of new restaurants in India.

According to the study, around 70% of the total foodservice consumption in the country occurs in the top 50 cities in India and among the high and upper-middle income segments. These cities are expected to remain demand hotspots even in the medium term.

Significant investor interest

The consumer segment, especially food and beverages, is drawing significant interest from investors. 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 it to foreign investors stalled, Bloomberg reported in June. Previously, private equity firms Blackstone, Temasek Holdings and Bain Capital were looking to buy at least 51% of the company at a valuation of between $8 billion and $10 billion.

In January, Mint reported that promoters and investors of Theobroma Foods have entered into talks with merchant bankers to sell their stakes in the 20-year-old bakery 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 company has struggled to grow sustainably and boost earnings in recent years, Mint reported on August 18. Soulfull, one of Manna’s competitors, was acquired by Tata in February 2021.

Other companies like Curefoods, Rebel Foods, Eatfit, Cakezone, among others, are also reported to be in talks to raise capital from venture capitalists, highlighting the high growth potential of the segment.