CX Partners seeks exit from Thalappakatti Hotels at ~₹1,000 crore valuation
After seven years, PE firm CX Partners is looking to sell its majority stake in Dindigul-based biryani chain Thalappakatti Hotels, targeting nearly double its 2019 entry valuation as revenue crossed ₹406 crore in FY25 and PE interest in India's restaurant sector heats up.
What happened
CX Partners is exiting its majority stake in Tamil Nadu-based Thalappakatti Hotels after seven years, seeking ~₹1,000 crore valuation amid rising PE interest in
Key facts
- ₹1,000 crore target valuation
- ₹860 crore prior valuation
- ₹260 crore CX stake purchase in 2019
- ₹406.2 crore FY25 revenue
- ₹340.3 crore FY24 revenue
- ₹7.3 crore FY25 profit
- ₹4.4 crore FY24 profit
- 100+ outlets
- $80 billion food services market
- 10-11% CAGR through 2030
Why this matters
A ~₹1,000cr valuation for a ₹406cr-revenue regional biryani chain sets a rich benchmark multiple that acquirers eyeing F&B/QSR consolidation should watch closely.
What to watch
- Announcement of exclusivity or signing of definitive agreement with a specific buyer
- Any leaked term sheet or valuation revision (up or down) during due diligence
- Comparable QSR/regional F&B deal multiples closing in India (read-through on pricing)
- Thalappakatti's expansion outside Tamil Nadu/South India as a value-creation lever
- CX Partners' fund lifecycle pressure (fund vintage, LP redemption timelines) forcing a faster close
- Track appointment of investment bank/advisor for the sale process and any teaser circulation among PE/strategic buyers
- Monitor bids from consumer-focused funds (Everstone, A91, Peak XV, General Atlantic) or QSR strategics for indicative term sheets
- Watch for management commentary on expansion plans (new states, cloud kitchens, franchise model) that could justify premium multiple
- Check FY26 Q1-Q2 revenue/margin trajectory to see if growth momentum sustains the ₹1,000cr ask
Also reported by
- Mint — Same time