Bira 91: Company Overview
Founded in 2015, Bira 91 is a leading Indian beer brand known for its innovative and award-winning brews. Backed by global investors, including Sequoia Capital India, Sofina, and Kirin Holding, the brand is redefining India’s beer culture with unique flavors like spice-infused lagers and tropical IPAs. Bira 91 operates four taprooms—two in Delhi NCR and two in Bengaluru—where patrons can enjoy experimental brews paired with a curated curry-shop menu.
Financial Highlights: FY23 vs FY24 Comparison
₹ in crores
| Particulars | FY24 | FY23 | % Change |
|---|---|---|---|
| Net Revenue | 421 | 848 | -50% |
| EBITDA | -471 | -240 | -96% |
| PAT | -749 | -445 | -69% |
Reasons for Loss and Name Change Impact
B9 Beverages Ltd, the parent company of India’s pioneering craft beer brand Bira 91, faced a financial and operational nightmare—one that cost the company a staggering Rs 80 crore in inventory write-offs, widened its losses, and disrupted sales for months. The root cause? A seemingly harmless decision to drop the word “Private” from its name.
While this change was meant to align with Bira’s IPO ambitions in 2026, it triggered unforeseen regulatory challenges that severely impacted its business.
The Unexpected Cost of a Name Change
At first glance, renaming B9 Beverages Private Ltd to B9 Beverages Ltd appears to be a minor administrative tweak. However, India’s complex alcohol distribution laws require companies undergoing such structural changes to re-register their product labels and secure fresh regulatory approvals from state excise departments before resuming sales.
This bureaucratic bottleneck led to 4-6 months of stalled operations, creating a ripple effect across Bira 91’s supply chain and market presence. The consequences were devastating:
- Rs 80 crore in inventory write-offs as perishable beer stock became unsellable.
- A 30% drop in sales volume, falling from 9 million cases in FY23 to approximately 6-7 million cases in FY24.
- Delayed market re-entry, while competitors aggressively filled the void left by Bira 91’s absence.
This disruption couldn’t have come at a worse time—just as competition in India’s craft beer market was intensifying.
FY25 Performance and Recovery
₹ in crores
| Particulars | H1FY25 | H1 FY24 | Y-oY |
| Net Revenue | 213 | 289 | -26% |
| EBITDA | -111 | -153 | +28% |
Despite the setbacks, Bira 91 is showing signs of recovery. According to its Q3FY25 investor update, the company has successfully bounced back with:
₹ in crores
| Particulars | Q3FY25 | Q3FY24 | Y-oY |
| Net Revenue | 67 | 47 | 42% |
| EBITDA | -70 | -140 | 49% |
- 50% growth in volume and 42% growth in revenue in Q3FY25 compared to the previous year.
- 50% increase in EBITDA, indicating better cost management and profitability strategies.
- Expansion of retail distribution back to pre-disruption levels with a strong focus on increasing store presence.
Additionally, Bira 91 has launched aggressive consumer activation campaigns like the Free Flow Fest, which engaged over 1 million consumers through festivals, outdoor displays, and in-store promotions.
Can Bira 91 Stage a Full Comeback?
Despite these encouraging signs, challenges remain. The broader Indian beer market is seeing massive investments from global players:
- United Breweries (Heineken) is investing Rs 750 crore in a new brewery in Uttar Pradesh—its largest expansion in over a decade.
- Carlsberg India is ramping up production and distribution, betting big on India’s growing demand for premium beer.
For Bira 91, the road ahead is clear but challenging: balance aggressive expansion with financial prudence. The brand that once disrupted India’s beer industry must now fight to maintain its niche appeal while competing with well-funded multinational giants.
Previous Funding Retails of Bira 91
| Year | Funding Details | Key Developments |
|---|---|---|
| 2014 | $1M → Invested by six friends (college alumni). | Early backers included co-founders of Snapdeal, Zomato, etc. |
| 2015-2016 | $6M (Seed Funding) from Sequoia Capital | Infrastructure setup in Madhya Pradesh and brand marketing. Additional investments from angel investors in the tech and startup community. |
| 2017 | $8M from Sequoia Capital ₹25 crores (~$3M) from Anicut Capital | Expansion of operations. |
| 2018 | $50M from Sofina | Founder’s stake diluted to 30%, Sofina acquired 28%. 5 product variants, 4.2M cases/year capacity. Sales: FY 2017 → ₹165 crores, FY 2018 → ₹158.6 crores. Ranked 5th biggest beer brand in India. |
| 2020 | $20M (Bridge round from Sequoia & Sofina) in April ₹11.5 crores in November, ₹9.3 crores in December | Entry into premium beer segment (20% market share). Overall market share: By Volume: 5.7%, By Value: 2.7%. Began manufacturing non-alcoholic beverages. Pandemic Impact: No revenue from April-June 2020. |
| 2021 | $20M (Pre-Series D Funding) in August | Brand recall and revival efforts post-pandemic. |
| 2022 | $70M from Kirin Holdings in November | Production capacity significantly expanded. Ranked 4th biggest beer brand in India. |
| 2023 | $10M from Japan’s MUFG | Revenue: FY 2023 → ₹850 crores. |
| 2024 | $50M total: – $25M from ECB/Kirin – $25M from Tiger Pacific Capital | Strengthening financial position for IPO. Total Capital Raised: $350M by end of 2024. |
Conclusion
Bira 91’s name change debacle serves as a cautionary tale for startups and emerging brands: regulatory diligence and strategic foresight must go hand in hand.
What seemed like a simple corporate restructuring decision ended up costing millions, disrupting supply chains, and giving competitors an edge. However, with rapid recovery in Q3FY25 and plans to turn operationally profitable in the next quarter, Bira 91 seems poised for a strong comeback.
As Bira gears up for its 2026 IPO, it must ensure that its growth strategy is as smooth as its signature wheat beer.
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