Private equity firm CX Partners has initiated the process to exit its majority stake in Thalappakatti Hotels Pvt. Ltd, a restaurant chain based in Tamil Nadu. According to sources, the valuation for the restaurant operator is projected to be around ₹1,000 crore, an increase from ₹860 crore in its last funding round. CX Partners acquired over a 50% stake in Thalappakatti Hotels for approximately ₹260 crore in October 2019, marking one of India's largest restaurant investments at that time.
Financial Performance
In the financial year 2024-25, Thalappakatti Hotels reported revenue from operations of ₹406.2 crore, up from ₹340.3 crore the previous year. The company's profit also grew to ₹7.3 crore, compared to ₹4.4 crore in the prior period. Advay Capital is advising CX Partners on the exit, which may involve a combination of primary and secondary share purchases, depending on the incoming investor's profile.
Investment Context
CX Partners has previously invested in other notable food and beverage companies, including Barbeque Nation and Sapphire Foods. The firm aims for a complete exit, although there may be opportunities for additional stake purchases in this round. The final valuation will hinge on the type of investor participating in the deal. Queries sent to Advay Capital, CX Partners, and Thalappakatti Hotels went unanswered.
The exit of CX Partners from Thalappakatti Hotels could influence the private equity landscape in the Indian hospitality sector, particularly affecting investor sentiment toward restaurant chains. Investors will watch for the outcome of the stake sale process and any potential new investors entering the market.