India’s Craft beer major B9 Beverage raises $20 million
Homegrown brewery player B9 Beverages has raised about $20 million in the pre-series D round, the founder of the company Ankur Jain confirmed to a media organization.
According to the company’s latest regulatory filing, it has received $4.8 million from more than a couple of dozen investors, who participated in the current round.
In the latest funding round, Valiant Mauritius Partners FDI ltd invested Rs 6.2 crore for about 1.25 lakh compulsory convertible preference shares (CCPS).
Along with other existing investors, Green Rush Holding, SKS Capital & Research and Pyramid City Projects also participated in the fundraising round.
Founded in 2015, B9 Beverages, a craft beer company has its flagship brand Bira 91, which is a manufacturer of eight beer varieties. The company has four breweries in the country.
The company’s brand Bira 91 marks its presence in major cities like Delhi-NCR, Mumbai, Goa, Kolkata, Bengaluru, Pune, and Chandigarh. The company has its office in New York City, United States.
United States’ Sequoia Capital and Belgium’s Sofina Capital-backed Bira91 have an employee strength of more than 600 headcounts. Prior to this, B9 Beverages raised $30 million from Kirin Holdings,
This was the first-ever investment in India by Kirin Holdings, a top-notch Japan beverage player. It purchased a 10% stake in the company. Sequoia holds 45% of the startup, and founder Jain held a 30% stake.
In the previous year, the company raised funds in two rounds. In the pre-Series C round, it raised $20 million and another Rs 11.5 crore in the Series C round. The company is looking to raise another $100 million in the Series D funding round.
Bira 91 competes against the new age liquor makers like Beer Cafe, Whilte Owl Brewery, Salud, among others. Also, it faces stiff challenges from industry veterans like Kingfisher, Carlsberg, Heineken and more.
Alcohol consumption and sales had plunged in the initial days of the lockdown, back in 2020. However, the liquor market is expected to rise at a rapid pace in the coming years.
Several states opened up online delivery of alcohol given that retail liquor sales involved huge crowds and the possibility of covid-19 transmission.
A report by Indian Council for Research on International Economic Relations (ICRIER) and PLR Chamber states that India is one of the world’s fastest-growing markets for alcoholic beverages.
The estimated market size of the Indian market is $52.5 billion in 2020. India’s liquor market is anticipated to grow at 6.8% CAGR between 2020 and 2023.