Craft beer maker Bira 91 has secured $25 million in funding from its existing investor, Kirin Holdings, through External Commercial Borrowing (ECB). This latest investment is part of a larger $50 million round that Bira 91 has been pursuing over the past three months. The funding comes after a previous $25 million investment from Tiger Pacific Capital in March.
Details of the Funding Round
Bira 91’s board of directors approved a resolution to raise $25 million from Kirin Holdings through ECB, which will be divided into two tranches of $12.5 million each. Entrackr reported this information after accessing the regulatory filing from the Registrar of Companies. Kirin Holdings retains the option to convert this ECB into Series D Compulsorily Convertible Preference Shares (CCPS) at a later date, giving both Kirin Holdings and Bira 91 flexibility while also providing the company with immediate capital.
Valuation Insights
The current $25 million investment from Kirin Holdings, together with the previous $25 million investment from Tiger Pacific Capital, increases Bira 91’s total funding raised in the last three months to $50 million. This money infusion values the company at over $625 million, according to the most recent investment round. Bira 91 has raised over $350 million in total finance, including a significant $70 million Series D round led by Kirin Holdings in November 2022.
Bira 91’s Business and Products
Bira 91 was founded by Ankur Jain in 2015 and has swiftly established itself as India’s leading craft beer brand. The company’s beer offerings include Bira White, Gold, Bira Blonde, and Boom Super Strong. Bira 91 has six manufacturing sites in India and has grown to over 1,000 locations in 25 nations. The brand is known for its modern and tasty beers, which strive to appeal to a global market with their distinct products.
Financial Performance
Despite its expanding popularity and market share, Bira 91 has had financial difficulties. In FY23, the company recorded a 17% year-on-year increase in scale, with revenues approaching Rs 850 crore. However, it also reported a substantial loss of Rs 446 crore for the fiscal year ended March 2023. This represented a 12% increase in losses over the previous fiscal year, when the company reported a loss of Rs 396 crore on revenues of Rs 719 crore. The company’s revenue growth and increasing losses reflect the financial challenges it faces as it expands its operations.
Strategic Implications
The strategic investment from Kirin Holdings not only provides Bira 91 with the necessary capital to continue its growth trajectory but also strengthens its relationship with a major global player in the beverage industry. The flexible structure of the investment, allowing conversion to Series D CCPS, aligns the interests of both parties and offers Bira 91 additional financial stability.
Future Prospects
Bira 91 intends to use the new capital infusion to improve its production capacities, broaden its market reach, and develop new products. The company is focusing on increasing its brand visibility both domestically and globally, capitalizing on the increased demand for craft beer. While the financial issues exist, the continuous backing from investors like Kirin Holdings and Tiger Pacific Capital demonstrates confidence in Bira 91’s long-term potential and growth strategy.
Bira 91’s recent $25 million funding from Kirin Holdings marks a significant milestone in the company’s growth journey. With a total of $50 million raised in the past three months and a valuation of approximately $625 million, Bira 91 is well-positioned to continue its expansion in the competitive craft beer market. The company’s commitment to innovation, quality, and global reach, combined with strategic financial backing, sets the stage for its continued success and evolution in the beverage industry.
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