B9 Beverages Ltd, the parent company of Bira 91, announced on Wednesday that it has secured a significant investment of $25 million from Tiger Pacific Capital, an Asia-focused fund based in New York and Hong Kong. This infusion of capital is part of a larger $50 million funding round, with participation from existing investor Kirin Holdings of Japan and Tiger Pacific Capital.
Strengthening Growth Initiatives
Ankur Jain, Founder and CEO of Bira 91, highlighted the importance of this new partnership in driving growth initiatives and fortifying the company’s supply chain. He expressed confidence that the investment will significantly bolster the company’s financial position, enabling it to take strategic steps towards expansion.
Expansion Plans and Manufacturing Footprint
With the newly raised capital, Bira 91 intends to expand its manufacturing footprint into new regions, particularly focusing on Uttar Pradesh. Currently, the company operates six large-scale manufacturing plants across the country. This expansion aligns with Bira 91’s vision to strengthen its presence and meet growing consumer demand.
Growth Trajectory and Market Position
Over the past nine years, Bira 91 has experienced robust double-digit growth, solidifying its position as the fourth largest beer company in India. It competes closely with multinational giants like Heineken, AB-Inbev, and Carlsberg. The company’s success is attributed to its understanding of the evolving Indian consumer preferences and its commitment to quality and innovation.
Diversified Portfolio and Pub Chain Ownership
In addition to its brewing operations, Bira 91 also owns The Beer Cafe, the largest beer-focused pub chain in the country. This diversified portfolio enables the company to engage with consumers directly and create immersive experiences around its products.
Strategic Investment and Vision
Run Ye, Founder of Tiger Pacific Capital, expressed excitement about partnering with Bira 91, recognizing its unique positioning and strong local manufacturing capabilities. The investment reflects Tiger Pacific Capital’s confidence in the Indian market and its commitment to supporting emerging brands with a deep understanding of consumer trends.
Established Backing and Investor Support
Since its inception in 2015, B9 Beverages has garnered support from leading investors, including Kirin Holdings, MUFG Bank, Sofina, and Peak XV Partners (formerly Sequoia India). This backing underscores the confidence of industry leaders in Bira 91’s growth trajectory and potential within the competitive beverage industry.
In conclusion, Bira 91’s latest investment signifies a strategic move towards expanding its manufacturing capabilities and strengthening its market position. With a focus on quality, innovation, and consumer engagement, the company is poised for continued success and growth in the dynamic Indian market.
