Despite the lockdown having a massive effect of beer makers and breweries, B9 Beverages, the company that owns the Bira 91 brand of beer has raised $20 million from its existing investors, Sequoia Capital and Sofina, a Belgium-based investor. This is a Series C fund raising for the company and is part of a $30 million equity infusion that has been planned by the startup.
Competing with some of the biggest names in the business, like Anheuser-Busch InBev, Carlsberg and United Breweries, and others, the Bira beer claims it holds over 5% of the market share for all beers and 20%+ in the premium beer segment in the country. The exact numbers have not been disclosed.
The company has four breweries in India, with two new ones commissioned recently, one each in the states of Karnataka and Andhra Pradesh. Bira beer has is presence in 400 cities spread over 10 countries. The funds now raised will be used in expanding its product reach and to scale up its share in the premium beer category going forward. B9 Beverages has raised $130 million ever since it was founded in 2015.
Despite the lockdown and the loss of business the company is confident it will reach more than 10% market share in many states this year.
Sofina and Sequoia are early stage investors in Bira (B9 Beverages). Sofina had made an investment in 2018 and Sequoia in 2016. Sofina has made investments in other big names Flipkart, Byju’s and Hector Beverages. Its stake in Flipkart might have been sold to Walmart.
The industry body, The Confederation of Indian Alcoholic Beverage Companies is trying to push the government to permit shops selling beer and other liquor in the country to open, at least in areas where the impact of COVID-19 is nil or negligible.
They are trying to point out that the states are losing out on revenue at a time when they need it most to meet the COVID-19 related emergencies.