Bira 91, a prominent Indian craft beer brand known for its urban appeal and iconic monkey logo, has found itself grappling with a corporate storm rooted not in its branding, but in its lesser-known legal identity: B9 Beverages Private Limited.
In the alco-beverage sector, brand visibility often plays second fiddle to the licensing held by the corporate entity behind the label. Bira 91, which had built a widespread consumer following, operated under the licenses of B9 Beverages Private Limited — the company that facilitated everything from manufacturing to sales through a complex regulatory framework.
Backed by $449 million in equity funding from marquee investors such as Peak XV Partners, Sofina, and Japan’s Kirin Holdings, Bira 91’s rapid ascent appeared secure. However, the company was quietly approaching a structural cliff — a shift triggered by its shares’ unexpected activity in the grey market, where unlisted securities are traded.
Founder and CEO Ankur Jain revealed that these trades were not merely notional; they were actual transactions, causing B9 Beverages’ shareholder count to balloon. Once the cap table exceeded 200 investors, the Companies Act, 2013 mandated the conversion of B9 Beverages Private Limited to B9 Beverages Limited — a public limited entity in structure, though not listed on any exchange.
The fallout was swift and severe. The change in corporate structure rendered the company’s existing licenses invalid, forcing a complete reapplication process in every state it operated in — both for manufacturing and distribution. The brand was effectively pulled from the market, triggering one of the most significant product recalls seen in India’s direct-to-consumer (D2C) space.
The disruption resulted in inventory write-offs amounting to ₹80 crore, business paralysis across multiple markets, and unpaid dues that led to widespread job losses due to shuttered manufacturing units.
In an interview with Inc42, Jain described the ordeal as the company’s most daunting crisis since the COVID-19 pandemic. “There is a lot of work to be done for us to repair the business and get to profitability. But we have survived probably the most debilitating part of our journey thus far,” Jain stated, noting that the company marked its 10th anniversary in February 2025.
Despite the setbacks, Jain expressed confidence in a revival strategy fueled by a planned $100 million equity round expected to close by Q2 FY26, along with a ₹100 crore rights issue. The turnaround plan includes sustaining a leaner manufacturing and distribution approach and reigniting brand trust and market presence.
Founded in 2015 following Jain’s earlier venture importing foreign craft beers to India, Bira 91 entered a market in flux. With major players like United Breweries under scrutiny and consumer appetite shifting, Bira 91 seized the opportunity by launching what it claimed to be India’s first bottled craft beer, initially importing stock from a Belgian unit.
The company quickly attracted investor attention. Its Series B round in 2018 brought in $50 million from Sequoia Capital (now Peak XV), followed by a $100 million infusion in two tranches led by Kirin Holdings. Additional debt funding — ₹208 crore from Kirin and ₹500 crore from various banks and NBFCs — supported the brand’s labor-intensive licensing and expansion efforts across 27 Indian states and multiple international markets.
Jain underscored the importance of licensing in the alco-bev sector, where each state requires separate permits and bureaucratic navigation. “Imagine doing that work once, only to realize you have to do it all over again,” he remarked, pointing to the company’s restructuring woes.
The case of Bira 91 serves as a cautionary tale in the startup world — a vivid illustration of how regulatory oversights, shareholder thresholds, and licensing complexities can converge to threaten even the most recognizable consumer brands.
With renewed funding on the horizon and a fresh start under its belt, the company now faces the uphill challenge of reclaiming its market position amid fierce competition from industry giants like AB InBev and United Breweries, as well as newer challengers such as Simba, White Owl, BeeYoung, and Kati Patang.
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