India’s popular craft beer brand Bira 91 is preparing for a major financial reboot. The company is reportedly looking to raise between $100 million and $132 million (about ₹1,000 crore) through a mix of debt and equity funding to revive its business operations and strengthen its financial health. After facing a difficult fiscal year, this funding round is expected to mark the beginning of a much-needed turnaround for the homegrown beer label.
Brewing Challenges: Why Bira 91 Needs Fresh Capital
Over the past year, Bira 91 has faced one of its toughest phases since its inception. A change in corporate structure forced the company to reapply for several state-level licenses required for brewing and distribution. This led to months-long disruptions in production, product recalls, and heavy financial losses. Reports suggest that Bira had to write off nearly ₹80 crore worth of products due to these operational setbacks.
In the financial year 2024, Bira 91’s total revenue fell sharply by 22% to ₹638 crore, while its losses widened by 68% to ₹748 crore. The cash crunch made it difficult for the company to manage vendor payments, employee salaries, and daily business operations. To overcome these challenges, Bira plans to use the upcoming fundraise to clear outstanding dues, revive production, and stabilize its cash flow situation.
The Rise of a Homegrown Beer Giant
Founded in 2015 by Ankur Jain, Bira 91 quickly disrupted India’s beer market with its modern branding and locally-inspired craft beer flavors. It targeted a young, urban audience that wanted something different from mainstream options like Kingfisher and Budweiser. Within a few years, Bira expanded across more than 550 Indian cities and 18 international markets, becoming India’s fourth-largest beer company by market share.
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