Bira Parent Delays Interest Payouts To Debt Investments Made Via KredX: Report

B9 Beverages Ltd, which owns craft beer brand Bira91, has reportedly delayed interest payouts to some of its debt investors through supply chain financing platform KredX. 

A retail investor told ET that for the last two months he did not receive any interest payment for the investments he made through KredX. 

The investor who has debt exposure to the beer brand said that he hasn’t received payments in March and April for investments made via KredX, the report added. 

Notably, B9 Beverages raised working capital debt through KredX in exchange of unpaid invoices as security. 

However, B9 founder Ankur Jain told ET that the company has been working with KredX for over six years and meets all obligations to the platform as well as lenders. 

“Any delays on specific limits are pre-aligned with KredX in accordance with the provisions of the agreements and we are not in default of any obligations,” said Jain. 

It is to be noted that KredX became Reserve Bank of India (RBI)-regulated trade receivables discounting system (TReDS) platform earlier this year. In January, KredX said it received RBI’s final approval to launch a TReDS platform. 

For context, TReDS enables the discounting of trade receivables on an electronic platform for micro, small and medium enterprises (MSMEs) through multiple financiers. The system has been envisaged with fostering transparency, ensuring timely payments and improving liquidity for small businesses. 

An investor told ET that B9 Beverages is currently facing liquidity issues but its management has informed lenders that it is in talks to raise funds to manage debt repayment.  

The company is planning to close a financing round worth INR 800 Cr through his holding company Day1 Advisors Pvt Ltd and B9 Beverages. 

Out of the total funds, INR 500 Cr will be raised by Day1 Advisors through structured debt, and will be used to buy stakes from B9 Beverages’ existing investors. 

Founded in 2015 by Jain, B9 Beverages is a craft beer brand that is known for its beer, ciders and seltzers. B9 Beverages counts Peak XV Partners, Sofina and DS Group among its marquee investors. 

On the financial front, B9 Beverages reported INR 846.6 Cr in revenue in the financial year 2022-23 (FY23) and a net loss of INR 391.5 Cr, as per Tofler. 

The development comes at a time when B9 Beverages is planning for an initial public offering in 2026. It was reported last year that the company tapped investment banking firm Morgan Stanley for its pre-IPO process.

The startup claims to be the fourth-largest beer company in India, sitting at a market share of 5% across key regions.

The beer brand raised $25 Mn via external commercial borrowing (ECB) from its existing backer Kirin Holdings in June last year.