Beer Brand Bira 91 Bags $10 Mn Funding From Japan’s MUFG Bank

Indian beer startup Bira 91 has raised $10 Mn from Japan’s largest bank, MUFG Bank, three months after it raised $70 Mn in its Series D funding round from Japanese beer company Kirin Holdings.

In a statement, the craft beer brand said it would use the fresh funds to ramp up production, bolster the supply chain, and improve its innovation capabilities.

Including the latest funding, Bira 91 has raised $290 Mn from investors such as Sixth Sense Ventures, Sofina and Sequoia India to date.

Founded in 2015 by Ankur Jain, Bira 91 sells craft beers and has a presence across 550 towns and cities, spanning over 18 countries. 

The startup claims to be the fourth-largest beer company in India, with a market share of 5% across key markets. Bira 91 has five manufacturing facilities and a production capacity of around 250 Mn litres (2.5 Mn hectolitres).

Commenting on the investment, Yasuhide Hayashi, executive officer of MUFG Bank, said, “We are proud to collaborate with Bira 91, the world’s fastest-growing premium beer brand. With this partnership, we are eager to work with the Bira 91 team to further their growth story and enhance their footprint in India as well as across the globe.”

Last October, the beer startup acquired the alco-beverage chain The Beer Cafe in an all-stock deal. In the same month, it also acquired brewery company Kamakhya Beer & Bottling Private Limited. Bira 91 then told Inc42 that the acquisition of The Beer Cafe would add 10 new brand stores to its existing chain.

In December 2022, Bira 91 converted into a public company, a move seen as a step towards its initial public offering (IPO). It also increased its ESOP pool by 15,66,390 options.

The beer maker narrowed its loss by 30% in FY21 to INR 211 Cr from INR 304.8 Cr in FY20. Its total revenue, at the same time, fell to INR 462.8 Cr in FY21 from INR 466 Cr in FY20, while its expenses dropped to INR 674 Cr from INR 719.6 Cr.

Bira 91 competes directly with global giants such as United Breweries, ABInBev and Carlsberg. The overall Indian beer market, which was pegged at INR 35,000 Cr in 2021, is expected to touch INR 58,000 Cr by 2027.