Remember when Bira 91 burst onto the Indian scene, promising a refreshing escape from the usual lager suspects? With its quirky monkey mascot and distinct flavours, it quickly became the urban millennial’s go-to craft beer, scaling up faster than you could say “cheers!” But beneath the frothy success, a bitter truth has emerged: Bira 91’s auditor has flagged a fully eroded net worth, raising serious questions about the company’s financial health.
The story of Bira 91, or more formally B9 Beverages Pvt Ltd, began in 2015, founded by entrepreneur Ankur Jain. Initially, the beer was brewed in Belgium, with ingredients sourced from France, Belgium, the Himalayas, and Bavarian Farms, before being imported to India. This unique approach, offering low-bitterness wheat beer and hoppy lagers, resonated deeply with Indian consumers. Within two years, Bira 91’s sales surged from 150,000 cases in its launch year to an anticipated 700,000 cases in 2016. The company quickly attracted significant investor attention, with early backing from Sequoia Capital India (now Peak XV Partners), Sofina, and later, Japan’s Kirin Holdings.
Fast forward to the present, and the narrative has taken a sharp turn. The auditor of B9 Beverages, Walker Chandiok & Co (a network firm of Grant Thornton International), in its report for fiscal year 2024, highlighted significant financial distress. The report stated that Bira 91’s net worth has been completely eroded. The company has accumulated substantial losses of ₹1,904 crore, and its liabilities exceeded assets by ₹619.6 crore as of March 31, 2024. Additionally, B9 Beverages reported a negative cash flow of ₹84 crore for FY24. The net loss for FY24 ballooned to ₹748 crore, a stark contrast to its previous performance.
So, what led to this precarious situation for a brand once eyeing a 2026 IPO? A significant part of the turmoil stems from a seemingly minor administrative change in 2023/24. In preparation for a potential IPO, Bira 91 changed its registered legal name from “B9 Beverages Private Ltd” to “B9 Beverages Ltd.” This seemingly innocuous move, intended to signal corporate maturity, plunged the company into a regulatory quagmire in India’s complex alcohol sector.
Alcohol is a state subject in India, meaning each state has its own excise laws, licensing norms, and labelling requirements. The name change meant Bira 91 was effectively treated as a “new company” by state excise departments. This necessitated a complete re-registration of licenses, label approvals, and fresh clearances across every state, a process that stalled sales for four to six months in key markets like Delhi-NCR and Andhra Pradesh. The consequences were dire: unsold stock worth approximately ₹80 crore accumulated and had to be written off, as old labels no longer matched the legal entity. Revenue for FY24 fell by 22% to ₹638 crore from ₹824 crore in FY23, and sales volumes plummeted from 9 million cases to 6-7 million.
The financial strain also led to internal crises. Over 250 employees reportedly demanded founder Ankur Jain’s ouster, citing poor governance and delayed salaries. Investor sentiment was also impacted, with reports of BlackRock withdrawing from a potential ₹500 crore debt deal. Despite these setbacks, Bira 91 is attempting a comeback. Fresh licenses have allowed relaunches in markets like Delhi and Uttar Pradesh, and a ₹100 crore rights issue has helped inject some liquidity. The company has also secured recent funding, including a $25 million Series D round in March 2024.
Bira 91’s journey serves as a potent reminder that in India’s diverse and often bureaucratic landscape, even a small administrative tweak can trigger a cascade of challenges. While innovation and brand building can propel a startup to dizzying heights, navigating the regulatory maze is equally crucial for sustained growth and survival. The brand that once promised a ‘flavourful’ revolution now faces the daunting task of proving its financial resilience and reclaiming its position in India’s competitive beer market.
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