Bira 91 Founder Ankur Jain Exits Company in Settlement Deal

Less than a decade after emerging as one of India's most recognisable homegrown beer brands, Bira 91 is entering a new chapter—this time without its founder at the helm.

The Economic Times reported on Wednesday that founder Ankur Jain has stepped down from the board and agreed to relinquish executive control and ownership as part of a settlement with institutional investors and lenders, bringing to a close a bruising two-year standoff over the future of B9 Beverages.

The settlement paves the way for a recapitalisation of the company, which plans to resume operations over the next three to six months after production ground to a halt.

For a company that spearheaded the rise of India's premium craft beer movement, the founder's exit marks the latest chapter in a series of regulatory setbacks, financial strain, governance disputes and legal battles that steadily unravelled one of the country's most celebrated consumer brands.

From breakout brand to IPO ambitions

Founded by Jain in 2015, Bira 91 quickly carved out a niche with its wheat beers and youthful branding, taking on multinational brewers in India's premium beer segment.

Backed by investors including Peak XV Partners, Sofina and Japan's Kirin Holdings, the company raised more than $200 million over the years.

Revenue crossed $100 million in FY23, making it one of the country's standout consumer startup stories. In 2022, it expanded beyond beer by acquiring pub chain The Beer Cafe, aiming to strengthen its presence across restaurants and on-premise consumption.

But the aggressive expansion coincided with preparations for a public listing that would ultimately prove costly.

A regulatory setback snowballs

Ahead of its proposed IPO, the company converted itself from B9 Beverages Private Ltd to B9 Beverages Ltd. The corporate restructuring required fresh excise approvals across multiple states because registrations for brands and labels had to be renewed under state liquor regulations.

The licensing delays disrupted production and sales across key markets, forcing the company to write off inventory worth about ₹80 crore and creating mounting working capital pressures. Jain later said the disruption alone resulted in losses of about ₹800 million.

The regulatory hit came alongside aggressive spending on marketing, brewery expansion and sponsorships, leaving the company struggling to raise fresh capital as losses mounted.

Financial stress spills into operations

By FY24, B9 Beverages reported a net loss of ₹748 crore on revenue of ₹638 crore, while sales volumes fell to 6-7 million cases from around 9 million in FY23.

The financial strain soon became visible across the business.

In May 2024, manufacturing and sales licences were revoked, disrupting operations, according to an Inc42 report. A few months later, in September 2024, independent directors Manoj Kohli and Bharat Anand stepped down from the board, the report said.

By early 2025, employees began raising concerns over unpaid salaries, while the company pursued fundraising to stabilise operations. It completed a ₹100-crore rights issue in June 2025, but that failed to arrest the broader cash crunch.

Layoffs followed. By July 2025, more than 400 employees had been let go since 2024, according to Inc42.

Employees, vendors and lenders push back

As liquidity tightened, operational issues escalated into governance concerns.

In October 2025, employees wrote to government authorities alleging months of unpaid salaries, pending reimbursements and unsettled statutory dues, while also raising governance issues. Around the same time, lender Anicut Capital and shareholder Kirin Holdings took control of the assets of The Beer Cafe, the hospitality business B9 had acquired in 2022, after enforcing pledged shares. Jain challenged the move in court.

A month later, Jain informed employees that he was attempting to sell a non-core asset to generate immediate cash for salary, provident fund and other employee dues, even as investors questioned the proposal.

The pressure was not limited to employees.

In May this year, glass manufacturer Hindusthan National Glass & Industries served B9 Beverages with a legal notice over alleged dues exceeding ₹8 crore, claiming the brewer had failed to lift more than five million customised bottles, leaving inventory commercially unusable. Jain acknowledged the company was receiving legal notices from several partners because of overdue payments.

Founder signals willingness to exit

Even before the latest settlement, Jain had publicly indicated he was willing to step aside if that would help revive the business.

In an interview with ET in December last year, he said some investors believed fresh capital would be easier to secure if he relinquished control. He also acknowledged that the company had failed to conclude a critical fundraising round after key investors declined to participate further, creating financial stress and overdue obligations.

"I formally offered to do so in writing in September and remain willing to do so if that is what enables the company to move forward," he had said.

That offer has now culminated in a formal settlement.

Under the agreement reported by ET, Jain and the promoter family will surrender executive powers and ownership in exchange for being released from personal liabilities linked to the company's debt. The parties have also agreed to withdraw legal proceedings against each other, while existing shareholders and lenders prepare to recapitalise the business and restart operations over the coming months.

For Bira 91, the deal represents an opportunity to revive a brand that once redefined India's craft beer market. Whether the recapitalisation can restore its place on bar shelves remains the next challenge.

Jain said the resolution would usher in "a new phase of growth" and that he would be "cheering for the company and the brand from the sidelines."