MC EXCLUSIVE Mad Over Donuts launches part stake sale amid deal rush in food segment

Locally, Mad Over Donuts competes with other dessert brands like Krispy Kreme, an American multi-national chain and Dunkin Donuts

• Mad Over Donuts seeks to sell minority stake and raise growth capital
• Chain may consider majority stake sale depending on deal talks and valuations
• Mad Over Donuts operates 150+ stores across major Indian cities

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Popular gourmet donut chain Mad Over Donuts, founded by entrepreneur Lokesh Bharwani and operated by Himesh Foods Private Limited, has launched a process to sell part stake and raise growth capital, multiple industry sources in the know told Moneycontrol.

“Mad Over Donuts is in value-unlocking mode and is looking to divest a minority stake and induct a private equity investor and expand operations. India has reached an inflection point with rising disposable income and the food market is growing faster than the overall GDP. That’s a key macro factor influencing activity in this space,” said one of the persons above.

A second person added, “The transaction has been launched and teasers have been sent to prospective suitors. These are early days in the process and amid the ongoing m&a action in the sector and depending on the conversations and valuations, if deemed feasible, the option of a majority stake sale may also be explored, but no final decision has been taken as yet on the deal structure and contours.”

The move comes during a phase when the western dessert, snacks, confectionary and QSR (quick service restaurant) segment in India has seen a flurry of back-to back deals over the last year, including investments in Haldirams’, Theobroma, Belgian Waffle, Iscon Balaji Foods, Balaji Wafers, Burger King operator Restaurant Brand Asia and most recently PVR Inox’s popcorn brand 4700BC, not to mention, the mega merger between Devyani International and Sapphire Foods.

“Lodha Capital Markets has been roped in as the sell-side advisor by Mad Over Donuts,” a third person elaborated.

All the three persons above spoke to Moneycontrol on the condition of anonymity.

Moneycontrol has sent a detailed email query to Himesh Foods Private Ltd, its senior executives as well as Lodha Capital Markets and has sent multiple reminders and text messages. An official response is awaited from both firms. This article will be updated as soon as we hear from them.

The expected valuation sought by Mad Over Donuts could not be independently ascertained by Moneycontrol. Earlier, transactions at dessert brands Belgian Waffle and Theobroma valued both the firms at around Rs 1,700 crore and Rs 2,400 crore respectively as per reports.

Mad Over Donuts: Peers and Presence

Locally, Mad Over Donuts competes with other dessert brands like Krispy Kreme, an American multi-national chain and Dunkin Donuts, which is run by listed Indian firm Jubilant Foodworks.

According to its LinkedIn page, Mad over Donuts began its journey in 2008 in Singapore. The menu includes 26 donut flavours (eggless) alongside mini bites, brownies, eclairs and beverages including espresso-based coffees, bubble teas and chilled frappes.

Tarak Bhattacharya is the chief executive officer of the leading donut chain that has a pan-India presence with 150 plus stores in Mumbai, Pune, Bengaluru, Chennai, Delhi, Noida, Gurugram, Kolkata, Hyderabad and Ahmedabad.

Which investors have struck deals in the food space earlier?

Previously, investors like Temasek and Alpha Wave Global, ChrysCapital, Vixar ( formerly Arpwood Partners), 360 One Asset, General Atlantic, Inspira Global and Marico have bet on Haldirams’, Theobroma, Belgian Waffle, Iscon Balaji Foods, Balaji Wafers, Restaurant Brand Asia and 4700 BC respectively.

The merger between Devyani International and Sapphire Foods ( both fall under the Yum! Brands umbrella) will consolidate KFC and Pizza Hut outlets across the country.

On January 23, 2025, CNBC-TV18 reported that the Bombay High Court had granted interim relief to Himesh Foods Pvt. Ltd., the operator of the Mad Over Donuts chain, staying a GST demand that sought to levy tax at a higher rate by treating individual food items as separately taxable supplies. “The order is being closely tracked by India’s food and beverage industry, where restaurants and cafés continue to face disputes over GST classification and rates,” the report said.