The move is being spearheaded by Kirin Holdings (Japan) and Peak XV Partners (formerly Sequoia Capital India), Bira’s two largest institutional investors, as per sources. This move follows a petition by more than 250 current and former employees demanding Jain’s ouster. The petition cited unpaid salaries, vendor defaults, and a lack of financial transparency, calling for new leadership to stabilise operations.
Kirin, a global brewing major that owns around 20.1% of Bira 91, has been a key strategic investor since 2021. The Japanese company, known for its Kirin Ichiban beer, entered India through Bira to capture a share of the country’s rapidly growing premium beer segment. Peak XV Partners, which holds a significant minority stake, has backed Bira since its early days as part of its consumer and D2C investment portfolio. Anicut Capital, another investor with exposure to Bira’s debt and equity, is also participating in the discussions. Founder Ankur Jain and his family together control roughly 17.8% of the company.
https://www.youtube.com/shorts/luoAWbIXWxk
₹80 crore name-change blunder
At the heart of Bira’s collapse is a minor corporate move that turned disastrous. In late 2023, B9 Beverages changed its legal structure from Private Limited to Limited, a routine step ahead of a planned IPO. But in India’s state-regulated alcohol sector, the change was treated as the creation of a new entity, forcing the company to reapply for excise licences, label registrations, and sales approvals in every state. As a result, sales were halted in almost all markets for months. CNBC-TV18 reported that the disruption rendered inventory worth nearly ₹80 crore unsellable, a setback that triggered a severe liquidity crunch. The move, meant to streamline future fundraising, instead wiped out nearly all of Bira’s revenue for several quarters and left competitors to seize its shelf space.
According to industry data, Bira’s revenue dropped 23% to ₹638 crore in FY24 from ₹824 crore a year earlier, while net losses soared to ₹748 crore, the worst in its history. The crisis forced the company to slash its workforce by more than half, delay salary payments for several months, and freeze vendor payouts.
Sources said Bira’s board had also shelved its IPO plans indefinitely as major backers, including BlackRock, withdrew from participation. Employees claim dues worth around ₹50 crore remain unpaid to more than 500 staff members.
The governance crisis has deepened the turmoil. The employee petition to investors accused Jain of “mismanagement and opacity” and urged Peak XV and Kirin to initiate leadership change. Both investors, sources said, are evaluating options ranging from a professional CEO appointment to a broader board overhaul, though no decision has been made yet. Jain continues to lead daily operations.
Despite the chaos, Bira is in advanced talks to raise $132 million (about ₹1,100 crore) in fresh funding to revive operations. As reported by CNBC-TV18, global investment group GEM (Global Emerging Markets) has emerged as a potential investor, with discussions under way for a mix of equity and structured financing. The funds will reportedly be used to clear pending dues, restart production, and expand distribution in core markets such as Delhi, Uttar Pradesh, and Karnataka.
A ₹100 crore rights issue earlier this year offered some short-term relief, while a newly appointed CFO is now overseeing efforts to stabilise cash flows and rebuild operations.
In a LinkedIn post addressing recent media coverage, Ankur Jain acknowledged the company’s struggles but defended his leadership, emphasising his commitment to employees and ongoing fundraising efforts.
“My singular focus is on completing the fundraise and protecting the interests of Bira 91 and its employees,” Jain wrote. “All stakeholders have been supportive of positive outcomes for the company in the past, and we are sure they will continue to stand by the company,” he added.
“No employee’s interest will be sacrificed as we succeed in our efforts,” he added, asserting that payroll had always been prioritised over other expenses and that the company would soon “bring back Bira 91 on the growth highway.”
While Bira 91 has resumed limited production and sales in a few states, the company’s market presence and brand equity have eroded sharply. Haryana and several other states are yet to renew licences, leaving large parts of the business stalled.
What began as a routine name change has snowballed into an ₹80 crore regulatory disaster, wiping out years of growth and forcing India’s most celebrated craft-beer startup into a fight for survival.
