Bira 91 Incurred Loss Of INR 445 Cr From Sales Of Beers In FY23

Delhi NCR-based beer brand Bira 91’s revenue inched closer to the INR 1,000 Cr mark in the financial year 2022-23 (FY23). The popular beer maker reported an operating revenue of INR 824.3 Cr in the year ended March 31, 2023, an increase of 15% from INR 718.8 Cr in the previous fiscal year. 

Including other income, the startup’s total revenue rose 17% to INR 848.7 Cr in FY23 from INR 726.4 Cr in the previous fiscal year. 

Founded in 2015 by Ankur Jain, Bira 91 claims to sell its beer across 550 towns and cities, spanning over 18 countries. The startup claims to be the fourth-largest beer company in India.

Bira 91’s primarily earns income by selling beers. The startup also began selling non-alcoholic beverages in 2020. 

Despite the rise in revenue, Bira 91’s net loss increased 12% to INR 445.4 Cr in FY23 from INR 396 Cr in the previous fiscal year.

Zooming Into Bira 91’s Expenses 

The beer maker’s overall expenditure increased 14% to INR 1,282.4 Cr during the year under review from INR 1,122.5 Cr in the previous fiscal year. 

Excise Duty The Biggest Expense: Bira 91’s biggest expense was excise duty, accounting for 29% of its total expenditure. The startup paid INR 365.8 Cr as excise duty on sale of its products in FY23. However, this was a decline of 8% from INR 398 Cr in the previous fiscal year. 

Procurement Cost Jumps: Bira 91 spent INR 239.1 Cr on procurement of raw materials for manufacturing beers in FY23, an increase of 49% from INR 160.3 Cr in FY22. 

Employee Benefit Expenses: Employee costs, which mostly comprise employee wages, increased 23% to INR 115 Cr in FY23 from INR 93.5 Cr in the previous fiscal year. According to the startup’s LinkedIn page, Bira 91 currently has 897 employees, an increase of 42% from the previous year. 

Advertising Expenses Dip: In what seems like a bid to cut costs, Bira 91’s advertising expenditure dipped 14% to INR 85.5 Cr in FY23 from INR 99.5 Cr in the previous fiscal year.

The startup’s EBITDA margin improved to -25.4% in FY23 from -29.7% in FY22

Bira 91 has raised over $263 Mn across multiple funding rounds till date. The startup counts Peak XV Partners, Sofina Ventures, Japan’s Kirin’s Holdings, and MUFG Bank among its backers.

In March this year, the startup bagged $10 Mn from Japan’s largest bank MUFG Bank. Bira 91 has five manufacturing facilities and a production capacity of around 250 Mn litres (2.5 Mn hectolitres). 

Last year, Bira 91 acquired 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).

Last month, another Indian beer startup, Proost, bagged INR 25 Cr (about $3 Mn) in its pre-Series A funding round, which was a mix of equity and debt.

Besides competing against established players like Diageo, United Breweries, and Pernod Ricard India, Bira 91 also competes with startups like White Owl Brewery and Simba.