B9 Beverages Ltd, the parent company of the popular Indian craft beer brand Bira 91, has secured $25 million (INR 207 crore) in funding from Tiger Pacific Capital, an Asia-focussed investment firm headquartered in New York and Hong Kong.
This deal is reportedly part of a $50 million fundraising round, in which the company’s current investor, Kirin Holdings of Japan, also took part with an equal contribution.
“With this capital we will expand our manufacturing footprint to new regions including Uttar Pradesh in the North. We are also excited to see a cross-over fund like Tiger partner with us at this stage of growth in the company,” said Ankur Jain, founder and CEO at Bira 91.
Bira 91 asserts itself as the fourth largest beer company in India, trailing behind multinational giants such as Heineken, AB-Inbev, and Carlsberg. Since its establishment nine years ago, it has consistently achieved robust double-digit growth. The company takes pride in its portfolio of premium flavors, which are distributed nationwide across 27 states.
“We are excited to partner with emerging companies in India, especially brands like Bira 91 with a unique understanding of the new Indian consumer, and a strong local manufacturing footprint,” said Run Ye, founder at Tiger Pacific Capital.
Bira 91 is present in more than 1,000 towns and cities across 25 countries, producing its beers across six manufacturing facilities in India. Last year, B9 Beverages expanded into the beyond beer category by introducing Hill Station Ciders, a portfolio of alcoholic ciders, and Grizly Seltzers, a line of hard seltzers inspired by cocktails.
Bira 91 runs four taprooms located in Bengaluru and Delhi- NCR. Each week, these taprooms introduce a new experimental beer, accompanied by a curated curry-shop menu.
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In 2022, B9 Beverages acquired The Beer Cafe, a well-known alco-beverage chain, as part of its strategy to bolster its presence in pubs and taprooms and to establish India’s first large-scale direct-to-consumer platform emphasizing beer and innovation. Additionally, Bira 91 provides branded merchandise spanning glassware, barware, apparel, and gifts.
During the fiscal year 2022-23, the company recorded consolidated net sales of INR 824 crore, compared to INR 718 crore in the previous year. Despite this growth, the company still hadn’t reached operational breakeven by FY23.
In addition to Kirin and Tiger Pacific Capital, the company is supported by other investors such as Japan’s largest bank, MUFG Bank, Belgium’s Sofina SA, and Peak XV Partners (formerly Sequoia India). Bira secured $10 million from MUFG in March of the previous year, shortly after raising $70 million in its Series D financing round.
