Bira91 parent plans a Rs 400-cr fund shot for expansion plans
B9 Beverages, maker of Bira 91 beer and owner of The Beer Cafe pub chain, is set to raise Rs 400 crore ($50 million) of fresh funds, executives close to the development said. The money, from existing investors as well as a new one, will be used to expand business. This will be the third round of fund raising for B9 Beverages in 13 months. The existing investors include Japan’s Kirin Holdings, Sequoia Capital and Sofina of Belgium.
“The deal is expected to be closed in the coming weeks, with all fundraise details having been finalised,” said one of the executives with direct knowledge of the matter.
The funds will help raise capacity and widen the distribution of Bira 91’s portfolio, which includes craft, lager and strong beer with products such as Bira White, Gold and Boom, besides cider ale and seltzers. The investment will also be used to expand The Beer Cafe and Bira 91 Taproom chains, according to the executives cited above.
The fresh fundraise comes at a time when the Indian beer market is forecast to almost double to $10 billion in a decade. This is expected to come from robust out-of-home demand at bars, restaurants, hotels, younger consumers, an evolving retail environment and new flavours and innovation in craft beers. The increase will come despite the Indian alcobev market being heavily taxed and pricing being controlled by individual state governments.
