In the fiscal year 2022-23 (FY23), Bira 91, the beer brand headquartered in Delhi-NCR, approached the INR 1,000 Cr milestone in revenue. The well-known beer producer recorded an operating revenue of INR 824.3 Cr for the year concluding on March 31, 2023, marking a 15% rise from INR 718.8 Cr in the preceding fiscal year.
When factoring in other sources of income, the startup’s overall revenue increased by 17%, reaching INR 848.7 Cr in FY23, compared to INR 726.4 Cr in the preceding fiscal year.
Established in 2015 by Ankur Jain, Bira 91 asserts that it distributes its beer to over 550 towns and cities, extending its reach to more than 18 countries. The startup asserts its position as the fourth-largest beer company in India.
Bira 91 generates its primary income through beer sales. Additionally, the startup expanded its market by introducing non-alcoholic beverages in 2020.
Even with the growth in revenue, Bira 91 experienced a 12% increase in its net loss, reaching INR 445.4 Cr in FY23, up from INR 396 Cr in the prior fiscal year.
The total expenses of the beer manufacturer surged by 14%, reaching INR 1,282.4 Cr in the year being assessed, up from INR 1,122.5 Cr in the preceding fiscal year.
Bira 91’s most significant cost was in the form of excise duty, representing 29% of its overall expenditure. The startup disbursed INR 365.8 Cr for excise duty related to the sale of its products in FY23. Nonetheless, this marked an 8% decrease from INR 398 Cr in the prior fiscal year.
Bira 91 allocated INR 239.1 Cr toward the acquisition of raw materials for beer production in FY23, reflecting a 49% upswing from the INR 160.3 Cr spent in FY22.
Costs associated with employees, primarily constituted by wages, rose by 23%, reaching INR 115 Cr in FY23, up from INR 93.5 Cr in the preceding fiscal year. As per Bira 91’s LinkedIn page, the company presently employs 897 individuals, marking a 42% surge from the previous year.
Appearing to aim for cost reduction, Bira 91 reduced its advertising spending by 14% to INR 85.5 Cr in FY23, down from INR 99.5 Cr in the prior fiscal year.
The startup’s EBITDA margin showed improvement, moving from -29.7% in FY22 to -25.4% in FY23.
Bira 91 has secured more than $263 Mn in funding through various investment rounds thus far. The startup’s supporters include Peak XV Partners, Sofina Ventures, Kirin Holdings from Japan, and MUFG Bank.
This March, the startup secured a $10 Mn investment from MUFG Bank, Japan’s largest bank. Bira 91 operates five manufacturing facilities with a production capacity of approximately 250 million liters (2.5 million hectoliters).
Apologies for any confusion earlier. Here’s a revised version starting with “Last year”:
Last year, Bira 91 concluded an all-stock acquisition of the alco-beverage chain The Beer Cafe. Concurrently, it also acquired the brewery company Kamakhya Beer & Bottling Private Limited. Following these acquisitions, Bira 91 stated that obtaining The Beer Cafe would result in the addition of 10 new brand stores to its existing chain.
In December 2022, Bira 91 underwent the transformation into a public company, a strategic move believed to be a significant step toward its anticipated initial public offering (IPO).
Last month, another Indian beer startup, Proost, successfully raised INR 25 Cr (about $3 Mn) in its pre-Series A funding round, a combination of equity and debt.
Read More: Proost Beer raises $3 Million in pre-Series A funding round for expansion
In addition to competing with established players like Diageo, United Breweries, and Pernod Ricard India, Bira 91 also competes with startups like White Owl Brewery and Simba.