Back in 2004, two sisters, Kainaz and Tina Messman, decided to turn their life-long passion for food and baking into a full fledged business. They set up Theobroma, a small cafe tucked away in a corner of Mumbai’s posh Colaba. Today, there are more than 200 Theobroma outlets in over 30 cities across the country.

The bakery chain’s evolution has been nothing short of remarkable. It has managed to build a profitable business that too in a category known to have products with one of the shortest shelf lives. The chain now commands a valuation of well over Rs 3,000 crore. In fact, investors like Chrys Capital, Bain Capital and Carlyle Group are queueing up to buy the 20-year-old brand.

But being in the big leagues has meant changing up its strategy. Over the years, Theorobroma has cut down the number of baked and semi-baked items on its menu, and instead filled their shelves with longer lasting products like cookies.

It’s been able to do that because of its massive, centrally located commissaries. And these strategic shifts have paid off big time. Because now investors are valuing the company at 7-9X its revenue. All of this is good news for its current promoters, the Messman sisters and the private equity investor ICICI Ventures, which invested $20 million between 2017 and 2019. Both are likely to exit with handsome returns.

But once that happens, where would that leave Theobroma? Most industry experts say that sailing through with new owners is no picnic.

Tune in.

Daybreak Unwind recommendations for folk songs:

Rahel: Genda Phool, Delhi 6, 2009
Snigdha: Sketches of Darjeeling by Bipul Chettri, 2014
Anushka: Mor Bani Thanghat Kare by Jhaverchand Meghani
Hari: Kalakkatha Sandana Meram by Nanjamma

**Correction: Snigdha mistakenly said Mame Khan instead of Mangey Khan while talking about the Manganiyar singer's death. The error is deeply regretted.

Daybreak is now on WhatsApp at +918971108379. For next Thursday's Unwind, send us your recommendations to us as texts or voice notes. The theme is "coming of age."