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Bira 91’s Highs and Hard Falls Explained: How India’s craft beer darling hit turbulence
Once a poster child of India’s craft beer boom, Bira 91 now battles regulatory hurdles, mounting losses, and internal unrest- an illustration of the perils of rapid growth in a fragmented market.
As of June 2025, founder Ankur Jain and his family held a 17.8% stake in B9 Beverages, while Kirin Holdings was the largest shareholder with a 20.1% stake. The company’s board includes Jain, his mother, and his wife. (Image source: Moneycontrol)
When Bira 91 burst onto the Indian beer scene in 2015, it was more than just a drink- it was a cultural phenomenon. With its bright cans, quirky monkey logo, and bold flavours, Bira 91 quickly became a symbol of modern, youthful taste. Pubs, parties, and social gatherings across India had a new must-have, and investors eagerly lined up to back the brand’s meteoric rise.
Meteoric Rise
By 2023, Bira 91 had sold nine million cases across 550 towns and 18 countries, generating revenues of Rs 824 crore. Venture capital firms like Sequoia India (now Peak XV Partners) and Japanese beverage giant Kirin Holdings invested heavily, and an IPO seemed imminent. Founder Ankur Jain had turned Bira 91 into a beacon of India’s craft beer revolution.
But a seemingly small administrative decision triggered a chain of problems that would bring the company to its knees.
The Legal Name Change That Sparked Trouble
In preparation for its IPO, Bira 91 changed its legal name from “B9 Beverages Private Ltd” to “B9 Beverages Ltd.” While intended as a simple administrative step, the move triggered a regulatory crisis. Alcohol laws in India are state-specific, and the change required the company to obtain fresh licenses, label approvals, and regulatory clearances in each state- a process that stretched four to six months.
During this period, key markets like Delhi-NCR and Andhra Pradesh effectively went dry. Warehouses filled with Rs 80 crore worth of unsellable stock, some of which became obsolete. Revenue fell 22% to Rs 638 crore, net losses ballooned to Rs 748 crore, and sales dropped from nine million cases to six-seven million. Meanwhile, competitors like Simba and White Owl seized the market gap.
By the time production resumed in some markets, the damage was already visible.
To keep afloat, Bira turned to its shareholders with a rights issue of ₹100 crore at ₹325 a share. The offer valued the company at about ₹2,100 crore, far lower than in earlier rounds when investors like Sofina and Kirin Holdings paid richer multiples. The cash was meant to clear vendor dues and restart operations, but the markdown told its own story.
Financial Turmoil
Auditors Walker Chandiok & Co reportedly highlighted significant concerns over the company’s financial health. The FY24 audit revealed a negative cash flow of Rs 84 crore, accumulated losses of Rs 1,904 crore, and liabilities exceeding assets by Rs 619.6 crore. Current liabilities far outstripped current assets, casting doubts over the company’s ability to continue as a going concern.
In its audit report, Walker Chandiok & Co, a network firm of Grant Thornton International, reportedly said B9 Beverages “is exposed to market risk, credit risk, and liquidity risk which may impact the fair value of its financial instruments." The auditor also noted that the company’s net worth has been fully eroded, adding, "these events and conditions indicate the existence of material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern, with current liabilities far exceeding current assets."
FY25 financials are yet to be filed.
Internal Unrest
The internal fallout has been severe for Bira 91. Over 250 employees have recently demanded the removal of Ankur Jain, citing poor governance and delayed salaries, with some unpaid for six months. The workforce shrank from over 700 to just above 260. Investor confidence wavered, with BlackRock reportedly withdrawing a planned Rs 500 crore loan to the promoter group.
Read more: Over 250 Bira 91 employees demand founder Ankur Jain’s ouster amid financial turmoil and unpaid dues
The petition, addressed to the board, key investors, and the company’s largest lender, Anicut Capital, alleged “corporate governance failures, lack of transparency, delays in employee dues and salaries,” and pointed to pending creditor cases and unpaid vendor bills that reflect the company’s deteriorating financial condition.
As of June 2025, founder Ankur Jain and his family held a 17.8% stake in B9 Beverages, while Kirin Holdings was the largest shareholder with a 20.1% stake. The company’s board includes Jain, his mother, and his wife.
Leadership churn has also followed. Vikram Qanungo was brought in as CFO, replacing Meghna Agrawal recently. Manoj Mishra was hired as vice president of manufacturing, and Nayanabhiram Deekonda was elevated to senior vice president of sales. The moves have yet to steady the ship.
Vow to Stabilize Business
In his recent LinkedIn post, Ankur Jain addressed the woes and 'shed light on the direction in which the company is now headed'.
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In a detailed message to the team, Jain said his primary focus is on completing the ongoing fundraise and securing the capital required to stabilize operations.
“I am in discussions with investors to secure the capital required to protect your interests and stabilize the business,” he noted, adding that while “many bridges” remain to be crossed, he is confident of achieving a positive outcome with the support of stakeholders.
Addressing employee concerns, Jain emphasized that staff will remain a priority throughout the fundraise process. He acknowledged the distress caused by recent events but assured employees that no one’s interests would be compromised.
Highlighting the company’s track record over the past decade, he said, “In the last ten plus years, my attempt has been to ensure that payroll goes out on time, even at the cost of other critical investments.”
Jain also responded to negative press coverage surrounding the company, calling some reports “inaccurate in several facts, unsubstantiated and driven by convoluted and cynical objectives.”
He remained optimistic about restoring Bira 91’s growth trajectory, saying that he and the management team are committed to accelerating business operations and bringing the company back to a healthy and profitable position.
The founder concluded by reiterating the leadership team’s dedication, “We are here to stay, and I firmly believe, no one cares about this team, brand and organization more than this leadership team. We are certainly the most committed team that wants to bring this company back to its much deserved health, and in short order, we will get there.”
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