Bodhi Tree in advanced talks to buy stake in Adyar Ananda Bhavan at ₹3,000-3,500 crore valuation

This is a Mint Premium article gifted to you.Subscribe to enjoy similar stories.

The promoters of the southern India restaurant chain Adyar Ananda Bhavan have relaunched the deal to sell a stake in the company, valuing it at ₹3,000-3,500 crore.

Bodhi Tree, the investment platform backed by James Murdoch's Lupa Systems and vice-chairman of JioStar Uday Shankar, is said to be in advanced discussions to invest in the company for a significant minority to a majority stake, three people with direct knowledge of the deal said.

“The deal discussions that went cold more than a year ago has been restarted. Bodhi Tree is doing the deal,” said one of the persons cited above.

The company, backed by the likes of the Qatar Investment Authority, is likely creating a special purpose vehicle (SPV) to finance this deal, the person said. “The firm is likely to raise structured debt from Bain Capital’s special situations fund and will finance the equity part from its own fund,” the first person added.

The deal will see the promoters continuing to work alongside the investor for a few years. “There is likely a clause where Bodhi Tree can fully acquire the company over time,” the second person added.

“This is going to be a mix of primary and secondary fund infusion into the company,” the third person said. According to him, the Chennai-based company is looking to expand into other geographies within the country and abroad and will use the fresh capital to fund its growth plans.

Veda Corporate Advisors is advising A2B’s promoters on the transaction, while Moelis is advising BodhiTree Systems, the people added.

Moelis, A2B, Veda, BodhiTree and Bain did not respond to Mint’s requests for a comment till the time of publishing.

The development comes amid rising investor interest in India's restaurant and quick service restaurant (QSR) space, with the rise of online food delivery and branded dine-in formats accelerating this shift.

India's $80-billion food services market is projected to grow at a 10-11% compund annual growth rate (CAGR) through 2030, driven by the rapid expansion of organised players.

Founded in the 1980s by K. S. Thirupathi Raj, Adyar Ananda Bhavan operates over 140 outlets across India and also has a global presence. Its day-to-day operations and management are currently run by his sons, K.T. Venkatesan and K.T. Srinivasa Raja.

In FY25, the company reported revenue of ₹1,487.5 crore, compared with ₹1,392.7 crore a year earlier. Its net profit declined to ₹36.2 crore from ₹39.1 crore in FY24, according to documents sourced by Tofler from the ministry of corporate affairs.

Meanwhile, Bodhi Tree Systems is a consumer technology-focused investor scouting for opportunities in Southeast Asia, with a particular focus on India. Established in 2021, the entity has invested in companies such as Allen Institute, Network 18 and Upgrad, among others.

The proposed transaction follows a string of deals across India's restaurant and food services sector in recent months.

Last week, Mint reported on global private equity fund Invus Group exploring a ₹500 crore minority stake in Bengaluru-based restaurant chain Popo Ventures, which operates Pizza Bakery, Paris Panini and The Smash Guys. In the same week, Inspira Global completed the acquisition of Restaurant Brands Asia Ltd (RBA), the operator of Burger King in India and Burger King and Popeyes in Indonesia.

In April, private equity firm Siguler Guff invested $40 million in Trimex Foods Pvt Ltd, the exclusive Indian franchise partner for global brands such as Chili's Grill & Bar, PAUL and Cinnabon.

In March, Burma Burma raised ₹38 crore from existing investor Negen Capital and new investors Endurance Capital and Coheron Wealth. Burger Singh secured ₹82 crore in a funding round led by Artal Asia Pte Ltd, alongside Negen Undiscovered Value Fund and Aurum Rising India Fund.

Consolidation is also gathering pace across the sector. Listed player Sapphire Foods India is preparing ...