Bira 91 Founder Ankur Jain Steps Down Amid Recapitalisation Efforts

B9 Beverages, the maker of craft beer brand Bira 91, has entered a new phase of restructuring after founder Ankur Jain resigned from the company's board and agreed to relinquish all executive powers and ownership as part of a settlement with institutional investors and lenders.

The agreement brings an end to a dispute that had continued for nearly two years between the company's founder, shareholders and creditors. According to the settlement, Jain and his family, who collectively hold a 17.8 percent stake in the company, will give up their ownership interests and step away from management responsibilities. In return, Jain will be released from personal liabilities linked to the company's borrowings, having previously acted as a guarantor for certain loans.

"I have stepped down from the B9 Beverages board," Jain told Economic Times after signing the settlement agreement. Both parties have agreed to withdraw legal proceedings filed against each other, with the agreements signed on Tuesday. "I am thankful to everyone who has allowed us to create the Bira 91 brand, team members, investors, business partners," Jain said. "We ran into rough weather in the last two years. However, with this resolution, the business will enter a new phase of growth, a phase in which I will be cheering for the company and the brand from the sidelines."

The development comes as B9 Beverages faces significant financial challenges. The company has suspended production and accumulated debt of nearly Rs 1,000 crore. Existing investors are expected to participate in a recapitalisation process aimed at restarting operations within the next three to six months.

The company also plans to clear statutory obligations, employee dues and vendor payments during the same period.

Backed by investors including Peak XV Partners and Kirin Holdings, B9 Beverages was once among the fastest-growing names in India's beer industry, crossing $100 million in revenue in FY23. However, regulatory challenges linked to its corporate restructuring ahead of a planned IPO, combined with aggressive spending on expansion, marketing and sponsorships, contributed to its financial difficulties.

Reflecting on the company's journey, Jain said, "Over the last 10 years, the B9 team built the first 'Imagined in India' brand in the beer category."