Bira 91 is one of India's fastest-growing craft beer brands, founded by Ankur Jain in 2015. However, the popular beer brand has suffered a loss of Rs 80 crore due to a small change in its name. Ahead of a planned 2026 Initial Public Offering (IPO), Bira 91 changed its company's name from B9 Beverages Private Ltd to B9 Beverages Ltd. While the change may seem minor, it led to a halt in sales for several months, forcing the company to write off Rs 80 crore in inventory as it completed the registration of its new product label, according to a report by The Economic Times.
Due to compliance-related issues, sales fell by 22 per cent, while losses widened by 68 per cent in the financial year 2023-24, the report stated. As per the report, B9 Beverages posted a net loss of Rs 748 crore in 2023-24, surpassing its total sales revenue of Rs 638 crore.
"Due to the name change, there was a 4-6 month period where we had to re-register labels and reapply across states. This resulted in literally no sales for several months despite demand for our products," the report quoted B9 Beverages founder Ankur Jain as saying.
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Bira 91 had planned the IPO to raise fresh funds for its expansion. India's beer market is witnessing increased competition among microbreweries, craft beer makers, and global brewers. According to reports, the company said beer requires significant capital expenditure and working capital allocation for growth.
Bira 91 is backed by Sequoia Capital India, Belgium-based Sofina, and Japan's Kirin Holdings.