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Sequoia Capital back Bira 91 targeting to raise $100 mn from PE funds

Home grown alco-beverage major B9 Beverages is eyeing another fund raising activity. According to a report from Moneycontrol, the owner of leading craft beer brand Bira 91 is looking to mop up $100 million of capital.

Just five month back, the company had raised $30 million from Japan’s beverages firm Kiring Holdings in January 2021. The company was valued between $230-$240 million for this deal.

Delhi based B9 Beverages is backed by private equity firm Sequoia Capital. The company is looking to raise around $100 million for growth capital, expansion plans and marketing spends by selling a minority stake. The company has appointed investment bank Lincoln International to crack the deal, according to the media report.

The offer of minority stake sale has been floated, preliminary meetings have kicked off and Bira 91 is looking to tap private equity funds for the same. However, UnlistedZone could not verify the media reports in personal capacity.

Gateway Brewing Company, Independence Brewing Company, White Owl and Mohan Meakin are some of the domestic rivals of Bira 91.

According to reports, Kirin would hold less than 10% after the transaction in January. Sequoia is believed to be holding about 45% stake in the company, while founder Ankur Jain owns around 30%, these reports added.

In April 2020, the company had raised a funding of $30 million from Sequoia India and Belgian investor firm Sofina. Mumbai based Venture Capital Fund, Sixth Sense Ventures, Korean private equity fund Neoplux, and other few family offices.

The alcohol and Beverage theme is a key component of ‘revenge spending’ as the unlock rolls out across the globe. Once the restrictions are lifted, the toursim and entertainment sector are likely to gain more.

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Once a reckoning force in the beer industry, it has struggled a bit in the last one year due to covid-19 led pandemic. Its main business was coming from selling Bira Beers in the Pubs, Bars and Restaurants. And, in the last 1 year, this is the most affected sector of the economy. Malls, Bars, Restaurants, etc had remained closed for long duration of time. The government too has not done much for this sector. So, to beat the competition and maintain its leading position, Bira Beer needs money. That is reason, in the last 1 year they have collectively raised ~400  Crores from the investors and now looking further to raise ~750 Crores.

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