B9 Beverages, the company behind Bira alcoholic beverages, has reportedly delayed interest payments to certain debt investors who participated through the fintech platform KredX. The New Delhi-based company saw a decline in revenue and a sharp increase in losses during the financial year 2023–24, following a slight change in its name.
According to The Economic Times, retail investors with exposure to Bira’s debt via KredX faced delays in payments due in March and April. B9 Beverages had raised working capital by leveraging unpaid invoices through the platform. While such financing is traditionally sourced from banks, platforms like KredX have enabled retail investors to participate in this form of debt funding.
Ankur Jain, founder of B9 Beverages, told the publication that the company continues to meet all obligations. He said that any specific delays were pre-agreed with KredX and did not constitute a default.
Cash Flow Challenges
B9 Beverages' revenue declined by 22%, falling to Rs 638 crore in FY24 from Rs 824 crore the previous year. Its net losses widened to Rs 749 crore from Rs 445 crore, as per the ET.
In April, it was reported that B9 Beverages had delayed salary and vendor payments due to financial challenges. Earlier this year, the company stated that its legal transition from B9 Beverages Pvt. Ltd. to B9 Beverages Ltd. led to compliance issues, forcing the firm to write off inventory worth Rs 80 crore and pause sales operations for several months.
Jain said the company had to re-register its products in each of the 27 states where it operates due to the name change, resulting in sales disruptions of up to four months, particularly during the crucial summer season.
He also pointed to regulatory changes in Andhra Pradesh and Delhi—both significant markets—as further challenges. Despite these setbacks, Jain said the business had stabilised and recorded 40% year-on-year growth in the final quarter of FY25.
Since its launch in 2015, Bira has raised $457 million in equity from investors including Peak XV, Sofina, Sixth Sense Ventures, and Kirin Holdings, according to Tracxn. In 2024, the company secured $50 million through a mix of equity and debt. Tiger Pacific Capital took a 4% stake for $25 million, while Kirin provided another $25 million via external commercial borrowings.
The Bira maker raised around Rs 60 crore through fintech firms such as Yubi and venture debt providers including Alteria Capital. It also borrowed from Trifecta Capital and Anicut Capital, according to the ET report.
Jain denied any delays in repayments. However, one investor told the newspaper that the company is currently experiencing liquidity pressures but has informed lenders that it is in the process of raising fresh funds to manage its debt obligations.
Jain and his investment vehicle, Day1 Advisors Pvt Ltd, are in the process of arranging a Rs 800 crore funding round. Of this, Rs 500 crore will be raised through structured debt by Day1 Advisors to acquire shares from existing B9 Beverages investors.
Earlier in FY24, Day1 Advisors acquired a 10% stake in B9 Beverages from Peak XV Partners (formerly Sequoia Capital India) using structured debt raised from Axis Capital. An ICRA report indicates that B9 Beverages’ equity was pledged as collateral for this financing.
