Mad Over Donuts initiates minority stake sale amid flurry of dessert deals

Popular gourmet doughnut chain Mad Over Donuts, founded by entrepreneur Lokesh Bharwani and operated by Himesh Foods Private Limited, has initiated a process to divest a minority stake and raise growth capital, according to multiple industry sources cited by Moneycontrol.

The company is in “value-unlocking mode” and is looking to induct a private equity investor to support expansion, a person familiar with the development said, noting that rising disposable incomes and faster growth in the food market

compared to overall GDP are key macro drivers.

Another source said teasers have already been sent to prospective suitors, adding that while the process is at an early stage, a majority stake sale could also be explored depending on valuations and discussions, though no final decision has been taken.

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The move comes amid heightened M&A activity in India’s western dessert, snacks, confectionery and QSR space, which has seen several deals over the past year, including investments in Haldiram’s, Theobroma, Belgian Waffle, Balaji Wafers, Restaurant Brands Asia, and PVR Inox’s popcorn brand 4700BC, as well as the merger of Devyani International and Sapphire Foods, Moneycontrol reported.

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Mad Over Donuts competes locally with brands such as Krispy Kreme and Dunkin’ Donuts, the latter operated in India by Jubilant Foodworks. Founded in 2008 in Singapore, the brand offers 26 eggless doughnut flavours, along with brownies, eclairs and beverages.

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