Bira 91 founder Ankur Jain has stepped down from all executive roles and the company’s board after reaching a settlement with lenders and investors. The decision brings an end to a difficult phase for B9 Beverages, the parent company of Bira 91, after months of discussions involving nearly 30 stakeholders.
As part of the agreement, Jain and his promoter family gave up their combined 17.8% stake in the company. In return, they were released from the personal guarantees they had provided for B9 Beverages’ loans. Both sides have also agreed to withdraw all legal cases and claims against each other.
The settlement is expected to help the company restart its business by bringing in fresh investment and improving its financial position.
How an IPO Plan Led to Bira 91’s Biggest Crisis
The company’s problems started while preparing for its planned Initial Public Offering (IPO) in 2026. During the process, B9 Beverages changed its registered name from “B9 Beverages Private Limited” to “B9 Beverages Limited.”
Although it looked like a small legal change, it created a major problem in India’s liquor industry. Because of the name change, government authorities treated the company as a new business. This meant Bira 91 had to apply again for excise licences, product approvals and labels in every state where it operated.
As a result, the company could not legally sell its products for nearly four to seven months between January and June 2023. The long delay forced Bira 91 to write off inventory worth around Rs 80 crore and badly affected its sales.
At the same time, the company was already dealing with high expenses. Between 2015 and 2019, it had invested heavily in setting up four breweries and spent large amounts on marketing to grow the Bira 91 brand.
However, the business was not making enough money to cover these costs. In FY23, the company spent Rs 1.56 to earn every Re 1 in revenue, showing that its business model was under pressure.
The financial situation became worse in FY24. B9 Beverages reported a net loss of Rs 748 crore while its operating revenue stood at Rs 638 crore, which was 22% lower than the previous year. Sales also dropped sharply from around 9 million cases in FY23 to about 6-7 million cases. At the same time, the company’s total debt reached nearly Rs 1,000 crore.
With growing losses and falling sales, B9 Beverages failed to repay some of its loans. Many of these loans were backed by personal guarantees and pledged shares from the promoter family.
Employee Issues, Investor Disputes and the Final Agreement
The financial crisis also affected employees. Due to a shortage of cash, the company could not pay around Rs 50 crore in employee dues. More than 500 employees were impacted. Salaries were delayed for up to six months, reimbursements remained unpaid since November 2024, and the company also failed to deposit employees’ Tax Deducted at Source (TDS) and provident fund (PF) contributions on time.
To reduce costs, Bira 91 cut nearly half of its workforce over 15 months. The number of employees fell from more than 700 to just over 260.
The situation led to growing anger among employees. More than 250 staff members signed a petition asking the company’s board and major investors, including Kirin Holdings and Peak XV Partners, to remove Ankur Jain. They also raised concerns about transparency and corporate governance.
Jain reportedly tried to sell a non-core asset to arrange cash for employee salaries and PF payments, but investors did not support the proposal.
At the same time, differences with investors became more serious. Kirin Holdings, the company’s biggest shareholder with a 20.1% stake, was planning to exit its investment as part of its global business strategy. The company also appointed advisers to sell its debt exposure.
In October 2025, lenders Kirin Holdings and Anicut Capital took control of Better Than Before (BTB), the Bira 91 subsidiary that runs The Beer Cafe chain. B9 Beverages had bought BTB in 2022, and the business contributed around 35% of the group’s total revenue.
Jain challenged the takeover in court and received an interim order that stopped the immediate sale of BTB’s shares.
He also admitted that B9 Beverages had been unable to raise fresh funding for nearly one-and-a-half years. A proposed Rs 500 crore debt investment from BlackRock was also withdrawn, adding to the company’s financial troubles.
After months of negotiations, all parties have now reached a final settlement. Existing investors will lead a recapitalisation of the company to clear statutory dues, vendor payments and employee dues. The company also plans to restart operations over the next three to six months.
In his public statement, Ankur Jain apologised to employees for the delay in salaries and other payments. He accepted responsibility for the situation and said the company now needs fresh capital, a stronger balance sheet and a new management team to take it forward.
Although Jain has stepped away from the company, he said he will continue to support the Bira 91 brand from the sidelines while starting a new business with members of his core team. The settlement gives B9 Beverages a chance to recover financially and rebuild one of India’s most popular craft beer brands under new leadership.