Bira 91 was launched in 2015 by Ankur Jain and grew rapidly to become India's best-known craft beer brand, selling 9 million cases by 2023 and reaching a market capitalisation of roughly ₹4,370 crore. The company behind the brand, B9 Beverages, was backed by marquee investors — Sequoia Capital (now Peak XV Partners), Kirin Holdings, Sofina — and had expanded into seven countries.
In December 2022, B9 Beverages changed its corporate name from B9 Beverages Private Limited to B9 Beverages Limited — a routine corporate formality. But under India's state-by-state excise system, the new name was treated as a new legal entity. The company was forced to reapply for every excise licence, label approval, and product registration from scratch in every state where it sold beer. Sales were halted, and roughly ₹80 crore worth of stock expired while the company scrambled to re-register.
The name-change crisis, however, was only the trigger. The company was already brittle. Bira 91 depended on Andhra Pradesh for roughly 40% of its sales. When a new state government invited competing brands, market share in that state collapsed from 40% to 12%. The company's own brewery in Mysore ran at less than 20% capacity. The company had hired BCG for a ₹10 crore consultancy project but continued to operate with a centralised, founder-led management that insiders described as an 'echo chamber'.
By 2024, the cracks were visible everywhere. PF contributions had not been credited since April 2024. TDS worth roughly ₹50 crore for 50+ employees was not deposited. Employee count dropped from 700 to about 200. The company's auditor flagged that net worth was 'fully eroded', with cumulative losses exceeding ₹2,100 crore and total liabilities surpassing ₹1,400 crore. Unlisted shares lost roughly 70% of their value in three years. In July 2026, founder Ankur Jain exited the board and the promoter family agreed to surrender a 17.8% stake as part of a settlement.
The name change forced re-registration everywhere, but the real cost was fragility: one state held 40% of sales, and losses over ₹2,100 crore erased net worth.
The corporate name change from Private Ltd to Ltd was treated as a new entity under India's state excise system, forcing re-registration in every state and halting sales
Bira 91 depended on Andhra Pradesh for roughly 40% of sales — when the state government changed, competing brands entered and market share collapsed from 40% to 12%
The company expanded rapidly without profitability, burning cash on sponsorships, international expansion, and a ₹10 crore BCG project while the core business was not viable
Founder-led management created an echo-chamber culture with centralised control, siloed teams, and a pattern of late funding that arrived after peak season had passed
A regulatory crisis reveals fractures already there. Bira 91 blamed bad legal advice, but it was overexpanded, dependent on one state, and burning cash with no path to profit.
B9 Beverages underwent restructuring, cut staff from 700 to roughly 200, and sought new funding. Founder Ankur Jain exited the board in July 2026, with the promoter family surrendering 17.8% of equity. Kirin Holdings began seeking an exit. The company's auditor flagged market, credit, and liquidity risks. The case became a cautionary tale in Indian startup circles about overexpansion without operational discipline.
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