Vixar picks up 45% in Belgian Waffle, values chain at Rs 1,700 crore

Belgian Waffle clocked revenue of Rs 450 crore and EBITDA of Rs 62 crore in FY25. EBITDA is projected to rise to around Rs 80 crore in FY26 as the company continues to expand across formats and geographies

Vixar, formerly known as Arpwood Partners, has picked up a sizeable minority stake in India's dessert-focused quick service restaurant chain The Belgian Waffle Co in a transaction valued at around Rs 770 crore, the Economic Times (ET) reported, citing people familiar with the matter.

The agreement, signed over the weekend, will see Vixar acquire close to 45% equity in the company, implying an overall valuation of nearly Rs 1,700 crore, ET said. Veteran investor Vallabh Bhansali and HDFC Asset Management Co have also invested alongside Vixar as part of the consortium. Together, the group will emerge as the controlling shareholder, holding the single largest block of shares.

The transaction is largely secondary in nature. Existing private equity backer Marathon Edge, managing director and CEO Ankit Patel, and cofounders Shrey Aggarwal and Alisha Shirodkar are selling a portion of their stakes, people aware of the deal told ET.

Post-transaction, Marathon Edge is expected to retain about 12-15% ownership, while the remaining shares will be held by Patel and the founding team, ET reported.

Belgian Waffle clocked revenue of Rs 450 crore and EBITDA of Rs 62 crore in FY25. EBITDA is projected to rise to around Rs 80 crore in FY26 as the company continues to expand across formats and geographies, ET said, citing sources.

Founded in 2015, the chain has grown into India's largest western dessert-led QSR brand, operating nearly 700 outlets across 250 cities. The company pioneered the waffle category in India and has since widened its portfolio to include pancakes and a rapidly growing range of ready-to-eat and easy-to-make products such as waffle crisps, spreads, and pancake and waffle premixes, ET reported. These products are sold through both online and offline channels.

The brand follows a hybrid model with company-owned as well as franchisee-run outlets, spanning cafes, kiosks and takeaway formats. It also generates sales through food delivery platforms including Swiggy and Zomato, ET said. Queries sent to Belgian Waffle remained unanswered, while a Vixar spokesperson declined to comment.

Vixar was founded by former Carlyle executives Rajeev Gupta, Manoj Dengle and Amol Jain, who earlier worked with TPG India. Its investment portfolio includes Sterling Hospitals, SBFC Finance, Daignostix Services, Servion Wind Energy and affordable housing finance firm Sitara. Since 2015, the firm has deployed close to Rs 5,500 crore across more than seven family-owned businesses in India, ET reported.

Lodha Capital Markets acted as advisor to Belgian Waffle on the transaction. Before finalising the deal, the company had explored discussions with private equity firms such as ChrysCapital and Norwest Venture Partners, though those talks did not lead to an investment, ET said.

Promoted by entrepreneur couple Shrey and Alisha Aggarwal through Bloombay Enterprises, Belgian Waffle has increasingly shifted focus beyond dine-in formats. Its expansion into spreads and premixes reflects a broader strategy among QSR and café chains to tap the ready-to-eat segment amid softer discretionary spending, ET reported.

"Across sectors-whether food or lifestyle-retail chains are increasingly preferring diversified franchise partners for growth and profitability," the head of a consumer-focused private equity fund told ET. "This lowers fixed costs, hedges risk, and improves accountability."

The deal comes at a time of heightened dealmaking and expansion in India's food services industry, with several global and premium café and patisserie brands stepping up their presence. These include Tim Hortons, Le Pain Quotidien, Ladurée, Armani/Caffè and Pret A Manger, ET noted.

Data from the National Restaurant Association of India cited by ET shows that the country's food services market is expected to expand to Rs 7.76 lakh crore by FY28, from Rs 5.69 lakh crore in FY24, translating into a CAGR of 8.1%. Growth is being fuelled by a younger consumer base, rising demand from tier 2 and tier 3 cities, and deeper penetration of food delivery platforms.

A separate report by Kearney and Swiggy referenced by ET estimates that India's total food services market will exceed $120-125 billion by 2030, compared with $78 billion in 2025. The organised segment is projected to grow from 45-50% of the market in 2025 to about 55% by 2030, driven by QSRs, café chains and cloud kitchens, supported by higher incomes, digital adoption and a growing preference for convenience.