Following a turbulent year marked by license issues and revenue decline, the craft beer startup is seeking equity and debt funding to restructure operations and prepare for its 2026 IPO.
Bira 91 Plans $100 Mn Revival Round
India’s leading craft beer startup Bira 91 is in the process of raising $100 Mn (INR 888.5 Cr) through a combination of equity and structured debt, founder and CEO Ankur Jain confirmed to Inc42.
- The company has already received term sheets for both equity and debt components.
- Additionally, Bira 91 is planning a rights issue of INR 100 Cr ($11.7 Mn) in Q2 FY26 to further strengthen its balance sheet.
This capital will be used to repay outstanding dues, inject working capital, and fund capital investments for long-term growth.
$132 Mn Round in Talks with GEM
Separately, Bira 91 has been in discussions with New York-based Global Emerging Markets (GEM) to raise $132 Mn (INR 1,172 Cr).
- As per Reuters, the plan includes $50 Mn in equity from GEM, and $82 Mn in debt from undisclosed investors.
- This larger raise would give Bira the financial runway to bounce back from a major operational reset over the past year.
What Went Wrong? A Licensing Crisis
Bira 91’s challenges stemmed from a forced corporate structure change after it exceeded 200 shareholders, triggering a mandatory conversion from a private limited company to a public limited company (as per the Companies Act, 2013).
- The transition required re-acquisition of all state-level manufacturing and sales licenses, which caused:
- Product recalls worth INR 80 Cr
- Operational shutdowns of 4–9 months
- Revenue drop of 22% YoY to INR 638 Cr in FY24
- Losses ballooning 68% to INR 748 Cr
- Delayed vendor payments and cash flow stress
Bira 91’s high dependency on Delhi and Andhra Pradesh (which accounted for 40% of sales) further exposed it to political and policy volatility in those states.
Charting a Comeback: The Next Phase
Despite setbacks, Jain believes this funding round marks the start of a new phase for the company. Funds will be allocated to:
- Restructure sales and supply chain to ensure operational continuity
- Restore market share across key regions
- Fuel brand campaigns and premium product lines
- Rebuild relationships with vendors and channel partners
The fundraising efforts are part of a pre-IPO roadmap, with Bira 91 aiming to go public in 2026, reportedly in talks with Morgan Stanley for pre-IPO planning.
Competitive Landscape: Fighting on Two Fronts
Bira 91 operates in a fiercely competitive alcobev landscape:
- On one side, it faces legacy brewers like United Breweries (Kingfisher) and AB InBev (Budweiser, Corona), which dominate with scale and distribution power.
- On the other, craft beer upstarts such as Simba, BeeYoung, White Owl, and Kati Patang are chipping away with urban appeal, innovative flavours, and premium positioning.
Bira 91 claims to be the fourth-largest beer company in India, with a distribution footprint across 550 cities and 18 countries.
Investor Backing and the Road Ahead
To date, Bira 91 has raised $449 Mn, with investors including:
- Peak XV Partners (formerly Sequoia India)
- Sofina
- DS Group
- Belgium-based investment firm Sofina, which has backed the company since early rounds.
The upcoming fundraise and restructuring could position Bira 91 for long-term sustainability, provided it successfully navigates the regulatory maze and regains lost ground.
