Bira 91, an Indian craft beer maker, has secured $25 million via External Commercial Borrowing (ECB) from Kirin Holdings, with previous funding from Tiger Pacific Capital, solidifying its position as a prominent brand. This investment, split into two tranches of $12.5 million each, concludes a larger $50 million funding round pursued over the past three months.
Bira 91 has raised $50 million, including $25 million from Tiger Pacific Capital in March. The fresh funds, sourced through ECB from Kirin Holdings, will significantly bolster Bira 91ā€™s operations and expansion plans.
The recent funding from Kirin Holdings and the earlier investment from Tiger Pacific Capital values Bira 91 at approximately $625 million. Tiger Pacific acquired a 4 percent stake in Bira 91, underscoring the companyā€™s strong market position and growth potential.
Funding Structure and Flexibility
Kirin Holdings has the option to convert the ECB into Series D Compulsorily Convertible Preference Shares (CCPS) at a later date. This structure provides flexibility for Kirin Holdings while offering immediate capital for Bira 91. The company has raised around $350 million, including a significant $70 million Series D round led by Kirin Holdings in November 2022.
Founded by Ankur Jain in 2015, Bira 91 has established itself as a prominent craft beer brand in India. The company offers beer products, including Bira White, Gold, Bira Blonde, and Boom Super Strong. Operating six manufacturing units in India, Bira 91 is in over 1,000 towns across 25 countries.
Despite impressive growth, Bira 91 has faced financial challenges. The company reported a 17 percent year-on-year increase in revenue, reaching INR 850 crore in FY23. However, losses widened to INR 446 crore for the fiscal year ending in March 2023. This reflects a 12 percent increase in losses from Ā INR 396 crore in FY22.
Looking Ahead
With substantial funding and strategic investments, Bira 91 aims to continue its expansion and strengthen its market position. The support from Kirin Holdings and other investors highlights the confidence in Bira 91ā€™s potential for growth and innovation in the craft beer industry.
Tracxn market data shows that Bira 91 has raised $453 million in equity fundraising throughout 17 rounds. According to the IMARC Group, the Indian beer industry is predicted to increase at a compound annual growth rate (CAGR) of 7.1 percent between 2024 and 2032, reaching around $10 billion. According to the research, this surge is due to millennial consumersā€™ growing taste for alcoholic beverages and increased availability.
B9 Beverages Ltd, Bira 91ā€™s parent business, recorded a 14.4 percent rise in consolidated total revenue of INR Ā 848.7 crore for the fiscal year 2022-23 compared to the previous year. However, the companyā€™s net loss for FY23 increased 11 percent to INR 445.5 crore.
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