B9 Beverages Ltd, which owns Indian craft beer brand Bira 91, has raised $25 million (Rs 207 crore) in funding from Tiger Pacific Capital, an Asia-focussed investment firm headquartered in New York and Hong Kong.
This transaction is said to be part of a $50-million fundraise where the company's existing investor Kirin Holdings of Japan had also participated with 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 claims that it is the fourth largest beer company in India, behind only multinationals like Heineken, AB-Inbev and Carlsberg, and has experienced strong double-digit growth since its inception nine years ago. It boasts of a portfolio of premium flavors distributed nationally in 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 has presence in over 1000 towns and cities spread across 25 countries and brews its beers across six manufacturing units in India. B9 Beverages last year had entered the beyond beer category and launched Hill Station Ciders – its portfolio of alcoholic ciders and Grizly Seltzers – its line of hard seltzers inspired by cocktails.
Bira 91 operates four taprooms in Bengaluru and Delhi NCR, where it releases one new experimental beer every week, paired with its curry-shop menu.
In 2022, B9 Beverages had acquired The Beer Cafe, one of the popular alco-beverage chain to strengthen its play in pubs and taprooms and build India’s first large-scale direct-to-consumer platform focused on beer and innovation. Bira 91 also offers branded merchandise across categories such as glassware, barware, apparel, and gifts.
The firm had posted consolidated net sales of Rs 824 crore during fiscal year 2022-23 as against Rs 718 crore a year before. However, the company had not achieved operational breakeven even till FY23, as per VCCEdge.
Besides Kirin and Tiger Pacific Capital, the firm is backed by other investors, including Japan’s largest bank, MUFG Bank, Sofina SA of Belgium, and Peak XV Partners (formerly Sequoia India). Bira had raised $10 million from MUFG in March last year just months after it had secured $70 million in its Series D financing.
