Mad Over Donuts Stake Sale Plan Triggers Curiosity as Dessert Deals Boom in India
India’s quick service restaurant (QSR) and dessert segment is witnessing another high-profile deal move, with gourmet donut chain Mad Over Donuts initiating a process to sell a part stake and raise growth capital. The development comes at a time when investor appetite for food and beverage brands is rising, driven by India’s growing disposable income and premiumisation trends.
Founded by Lokesh Bharwani and operated by Himesh Foods Private Limited, Mad Over Donuts is exploring a minority stake sale and induction of a private equity investor to fuel its next phase of expansion. The move places it among a series of food and dessert brands tapping institutional capital to scale up operations and capture evolving consumer demand.
For market watchers, this signals that the food retail and QSR space remains a hotbed for private equity and strategic investments, even as broader markets turn selective.
Growth Capital Push Reflects Value-Unlocking Strategy
According to people aware of the development, the company has entered a “value-unlocking mode” and is looking to divest a minority stake to fund expansion.
One person familiar with the discussions said:
“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.”
Another source indicated that teasers have already been shared with potential investors and discussions are at an early stage.
“These are early days in the process and depending on conversations and valuations, if deemed feasible, the option of a majority stake sale may also be explored,” the person said, adding that no final decision has been taken on the deal structure.
Lodha Capital Markets has been appointed as the sell-side advisor, underscoring the seriousness of the process.
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Dessert and QSR Deals Are Reshaping India’s Food Investment Landscape
The Mad Over Donuts stake sale comes amid a wave of transactions in India’s western dessert, snacks, confectionery and QSR segments. Over the past year, the sector has seen multiple back-to-back deals involving:
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Haldirams’
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Theobroma
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Belgian Waffle
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Iscon Balaji Foods
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Balaji Wafers
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Restaurant Brand Asia (Burger King operator)
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PVR Inox’s popcorn brand 4700BC
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The merger of Devyani International and Sapphire Foods
Earlier deals reportedly valued Belgian Waffle at around ₹1,700 crore and Theobroma near ₹2,400 crore, giving a broad benchmark for how premium dessert brands are being priced. These valuations have strengthened investor confidence that scalable food brands can command strong multiples.
Global and domestic investors such as Temasek, ChrysCapital, General Atlantic, Alpha Wave Global and others have actively participated in this space, indicating sustained institutional interest.
Brand Presence and Competitive Position Strengthen Its Pitch
Mad Over Donuts has built a recognizable presence since its journey began in 2008 in Singapore. The brand offers 26 eggless donut flavours along with brownies, eclairs, mini bites and beverages such as espresso coffees, bubble teas and frappes.
Led by CEO Tarak Bhattacharya, the chain operates more than 150 stores across major cities including Mumbai, Bengaluru, Delhi NCR, Hyderabad, Chennai, Kolkata and Ahmedabad. Its pan-India footprint and dessert-focused positioning make it a direct competitor to international chains like Krispy Kreme and Dunkin’ Donuts, the latter operated in India by a listed player.
A strong urban presence and youth-focused menu align well with India’s consumption shift toward indulgence and premium snacking.
Regulatory Developments Add Context for Investors
Mad Over Donuts was also in the news recently for a regulatory development. In January 2025, the Bombay High Court granted interim relief to Himesh Foods Pvt. Ltd., staying a GST demand that sought a higher tax rate by classifying individual food items as separately taxable supplies.
The order has been closely tracked by the food and beverage industry, where GST classification disputes are common. For investors, regulatory clarity can be an important factor when assessing scalability and profitability in the QSR business.
Here’s What Happened Today and Why Traders Reacted
While Mad Over Donuts itself is unlisted, news of its stake sale has drawn attention in market circles because it reinforces the strong deal momentum in the food and QSR space.
Traders and investors reacted by:
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Tracking listed QSR and food stocks for sympathy moves
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Watching for signals of fresh private equity inflows
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Interpreting the news as validation of sector valuations
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Expecting more consolidation in the space
Deal activity in consumer sectors often boosts sentiment for listed peers, as it signals confidence in long-term consumption growth.
What This Means for Investors and Their Portfolios
For equity investors, the Mad Over Donuts stake sale is less about the company itself and more about the broader signal it sends. Rising deal activity suggests that private capital sees long-term value in India’s food services and QSR ecosystem.
Key portfolio takeaways:
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Positive read-through for listed QSR and packaged food players
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Signals sustained investor interest in consumption themes
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Highlights premium valuations in scalable food brands
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Reinforces India’s discretionary spending growth story
However, investors should remain selective. High valuations in consumer businesses require strong execution, brand stickiness and cost control to sustain returns.
Overall, the Mad Over Donuts deal process adds another chapter to India’s fast-evolving food investment story. If the transaction materializes at healthy valuations, it could further cement the dessert and QSR segment as a favored theme for both private and public market investors.
