[Update] Bira 91 Looking To Raise $100 Mn For Business Revival

Update | October 9, 20:00 IST

Bira 91’s founder and CEO Ankur Jain told Inc42 that the startup is planning to raise $100 Mn (INR 888.5 Cr). While Jain didn’t divulge the timeline for the closure of the round, he said that the company has received term sheets for structured debt and equity.

The new capital will be deployed to pay over dues, invest in working capital and capital investments for growth of the company’s business.

Besides this round, the company is also looking at raising INR 100 Cr ($11.7 Mn) via a rights issue in Q2 FY26.

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Original | October 9, 16:42 IST

Alcobev startup Bira 91 is reportedly in discussions with New York-based alternative investment group Global Emerging Markets (GEM) to raise $132 Mn (INR 1,172 Cr) in a new funding round. As per a report by Reuters, the craft beer maker plans to raise $50 Mn via equity from GEM and raise the remaining $82 Mn in debt from undisclosed investors. 

Inc42 has reached out to Bira’s founder and CEO Ankur Jain for comments on the development. The story will be updated based on the response.

The startup plans to utilise the fresh funds to aid its “serious efforts for business recovery, including restructuring its sales and supply chain operations”, Jain told Reuters.

At the heart of the matter lies the recent downturn that the startup faced in its business operations. Here’s a brief gist what exactly happened with Bira91 in recent times: 

• Bira 91’s corporate entity, B9 Beverages Private Limited, exceeded 200 shareholders in the secondary market. In line with guidelines outlined in the Companies Act, 2013, it had to convert to a public limited company (B9 Beverages Limited). This forced the company to re-acquire all state-level manufacturing and sales licenses under the new corporate identity.  
• The license re-acquisition process led to a mass product recall, write-offs of INR 80 Cr, and operational shutdowns lasting 4–9 months. FY24 revenue dropped 22% to INR 638 Cr, while losses rose 68% to INR 748 Cr. Cash flow and vendor/employee payments were severely impacted.
• Despite being present in 27 states, 40% of Bira 91’s sales came from Delhi and Andhra Pradesh. Political and policy changes in these states amplified the revenue decline, even as the overall Indian beer market grew 6–7% YOY.

In May, Jain told Inc42 that Bira 91 is ready for the next phase with its “largest fundraise”, where the CEO claimed the company is close to finalising a $100 Mn round by Q2 FY26 and a separate INR 100 Cr ($11.7 Mn) rights issue, which will help the company revive itself. 

Founded in 2015 by Jain, Bira91 is known for its beer, ciders and seltzers. It 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 competes in India with both legacy giants and new-age craft brands. On the legacy side, United Breweries (Kingfisher) and AB InBev (Budweiser, Corona) dominate with nationwide distribution and deep market presence. 

Meanwhile, urban-focused craft players like Simba, White Owl, BeeYoung, and Kati Patang have emerged, offering distinct flavors and premium positioning, while numerous regional microbreweries and local brands are capturing niche markets.

The startup counts Peak XV Partners, Sofina and DS Group among its marquee investors, and has raised $449 Mn in funding so far. Reports from July 2024 revealed that the alcobev startup is set to go public in 2026, and was in talks with Morgan Stanley for its pre-IPO discussions.