B9 Beverages, the company behind the popular craft beer brand Bira91, is planning an initial public offering (IPO) in 2026. The company has enlisted investment bank Morgan Stanley to assist with the pre-IPO process, according to executives familiar with the development. “We are planning our IPO in 2026, contingent on meeting operating milestones in the business,” stated Ankur Jain, CEO and founder of B9 Beverages. He declined to comment on the involvement of Morgan Stanley.
The decision comes amidst recent supply shortages of Bira91 in key markets such as Delhi, Karnataka, and Haryana, coupled with profitability pressures and increasing competition in the craft beer sector. “We had supply challenges in Q3 and Q4 of FY24 in some markets due to several factors,” explained Jain.
These included the overhaul of supply and sales planning processes with Boston Consulting Group (BCG), market corrections of inventory, regulatory paperwork for manufacturing licenses and label registrations due to a change from ‘private limited’ to ‘limited’, and the completion of fundraises in March-April 2024
Jain assured that supply issues have now been resolved in most markets, including Delhi, with license renewals completed in July. “The only market remaining to be resolved is Haryana,” he added.
B9 Beverages plans to list a decade after its launch in 2015, joining other consumer companies aiming to tap into a buoyant primary market. For FY23, B9 Beverages reported a net loss of ₹445.4 crore, up from ₹396 crore in FY22, according to filings with the Registrar of Companies. Revenues from operations grew 15% to ₹824 crore in FY23, up from ₹719 crore in FY22, while total costs increased by 14% to ₹1,282 crore from ₹1,122 crore during the same period.
Jain highlighted that the company has undergone a “deep transformation across supply and sales processes,” improving variable margins from 25% over the last four years to over 43% in the past six months.
A senior liquor industry executive, who preferred to remain anonymous, attributed the company’s losses to significant marketing expenses, including sponsorships for the ICC Cricket World Cup and T20 World Cup tournaments, as well as rapid overseas expansion. In March, private equity firm Tiger Pacific Capital acquired approximately 4% of B9 Beverages for $25 million. This deal followed Japanese beverage group Kirin Holdings increasing its stake to 20% for $25 million. Other investors in B9 include Peak XV and Belgium’s Sofina.
Over the past two years, B9 Beverages has attracted $130 million in investments, including $70 million from Kirin in November 2022 and $10 million from Japan’s MUFG Bank. Two years ago, B9 Beverages acquired the homegrown beer pub chain Beer Cafe in an all-cash deal. “Some funding is equity and is being used to retire some of the debt, such as for the Beer Cafe acquisition,” noted the industry executive.
In conclusion, B9 Beverages is positioning itself for significant growth and a landmark IPO in 2026, focusing on strategic supply chain enhancements, robust financial performance, and strategic investments to solidify its market position in the competitive craft beer industry.
