Bira Unlisted Shares (B9 Beverages Ltd.)

Are you looking to invest in a disruptive, high-growth consumer brand that has captured the imagination of urban millennials? Bira 91 , owned by B9 Beverages Pvt. Ltd. , is one of the fastest-growing beer brands in the world. With a playful monkey mascot, bold identity, and delicious beers, Bira has become a rage among young drinkers in India and is now expanding globally.

Backed by marquee investors like Sequoia Capital and Sofina, and with a valuation of ~₹3,900 crore, Bira 91 offers a unique opportunity to invest in a brand that is redefining the Indian beer market.

Company Overview: The Rise of the Playful Monkey

• Founded: Summer of 2015 by B9 Beverages.

• Headquarters: New Delhi.

• Mission: To disrupt the global beer world with 21st-century technology, color, and flavor.

• Target Audience: Crafted for the creative urban drinker who likes to have fun and doesn’t take life (or beer) too seriously.

• Mascot: A playful monkey that embodies the brand’s fun and irreverent spirit.

Global Expansion: From India to the World

Bira’s ambitions have always been global.

• 2017: Leaped across to New York City to begin its campaign in the United States.

• 2018: Started wider expansion in the Asia Pacific market by entering Singapore.

• 2019: Clinched a landmark ICC sponsorship deal for five years , becoming the first Indian beverage brand to strike a global sponsorship deal with the cricket governing body. The brand featured prominently in the ICC World Cup 2019 in England.

  • Deal Size: Estimated at $5-6 million per year .

  • Strategic Advantage: India hosted two big-ticket events – the Cricket World Cup 2023 and the T20 World Cup 2021 , giving Bira immense visibility.

Key Milestones: A Story of Hyper-Growth

• Fastest-Growing Beer: In less than three years, Bira became the fastest-growing beer brand in the world (growing 5x in 2017).

• Global Ranking: Now ranks among the top 25 craft beer brands worldwide by sales volume.

• Manufacturing: Operates two breweries in India , with a fifth brewery planned before the end of 2021 to meet surging demand.

  • Existing Capacity: 2 million hectoliters.

  • New Capacity: Up to 1 million hectoliters (expandable).

• Team: A passionate team of over 350 beer lovers across offices in nine cities, including New York City.

• Market Position: India’s fourth-largest brewer , trailing only global giants Anheuser-Busch InBev (Budweiser), Carlsberg, and Heineken (Kingfisher).

• Sales Run Rate: Annualized sales of $170 million (as of Aug 2021).

• Profitability: Expected to be profitable at an operating level within six months (as per founder Ankur Jain’s interview in Aug 2021).

Production Scale: Massive Ramp-Up

• Monthly Production (Post-COVID): 22 lakh cases per month (1 case = 12 bottles).

• Total Bottles: Approximately 2.64 crore bottles per month .

• Pre-COVID Capacity: Was just 6 lakh cases per month, demonstrating a 3.6x increase in production capacity, driven by strong demand as consumers returned to bars and restaurants.

The Beer Market Opportunity

India’s beer industry is poised for significant growth.

• Market Size (2020): ~₹37,100 crore.

• Projected Market Size (2026): ₹66,200 crore .

• Expected CAGR: ~9.2% .

This provides a strong tailwind for Bira as it expands its footprint and captures market share.

Investor Backing: A Who’s Who of Global and Indian Investors

Bira 91 has attracted some of the most prestigious investors in the world.

Marquee Investors:

• Sequoia Capital (Global venture capital giant)

• Sofina (Belgium-based investment firm)

Celebrity & Angel Investors:

• Farhan Akhtar (Filmmaker/Actor)

• Zoya Akhtar (Filmmaker)

• Ritesh Sidhwani (Film Producer)

• Kalyan Krishnamurthy (CEO, Flipkart)

• Rohit Bansal (Co-founder, Snapdeal)

• Deepinder Goyal (Co-founder, Zomato)

• TR Capital, Anicut Capital, Smile Group

Funding Rounds & Valuation History

Business Strategy: Navigating Inflation with Premium Focus

The company faces challenges from global inflation but has a clear strategy to tackle it.

The Challenge: Rising Input Costs

• Raw Materials: Wheat/Barley, Glass, Aluminium.

• Price Surge: Barley prices surged 65% in one year (impacted by Russia-Ukraine war, as Ukraine exports 18% of world’s barley).

• Cost Inflation: Overall costs have risen by 30-70% , creating an “extremely tough” environment.

The Strategy: Focus on Premium Beers

• Bira has a double-digit market share in the premium beer segment .

• Premium beer consumers are less price-sensitive.

• By focusing on its core premium offerings, Bira can pass on increased costs to consumers more effectively, protecting margins.

Product Portfolio & Competition

• Portfolio: A strong range of “essential beers” aimed at driving a global shift towards more color and flavor.

• Competitors: Competes with other Indian craft beer startups like White Owl, Simba, Brewbot, White Rhino, and Kati Patang , as well as global giants.

Financial Performance (FY21 – FY23)

Bira’s financials show strong volume and revenue growth, though it remains in investment mode with negative EBITDA as it scales.

Analysis:

• Strong Revenue Growth: Net revenue more than doubled from ₹208 Cr (FY21) to ₹559 Cr (FY23) .

• Volume Growth: Volumes grew 2.2x from 415 to 927 over the same period.

• Investment Phase: Negative EBITDA reflects heavy investment in brand building, sales & marketing, and expansion, typical for a high-growth consumer brand.

• Improving Trend: The EBITDA loss has remained range-bound despite revenue scaling, indicating improving operating leverage.

Current Valuation & Share Price

• Current Unlisted Share Price: ~₹650 per share

• Outstanding Shares (Post-Conversion): ~6 Crore (as of Mar 2024, after conversion of CCCPS)

• Market Capitalization: ~₹3,900 Crore

• Revenue (FY23): ~₹850 Cr (Gross)

• Mcap/Sales Ratio: ~4.5x

Key Investment Highlights

1. Hyper-Growth Brand: One of the fastest-growing beer brands globally, with a strong connection to urban millennials.

2. Marquee Investors: Backed by Sequoia, Sofina, and a host of celebrity and successful entrepreneur angels.

3. Global Ambitions: Already present in the US and Singapore, with an ICC sponsorship providing global visibility.

4. Massive Market: Operating in India’s rapidly growing beer market (projected to reach ₹66,200 Cr by 2026).

5. Strong Volume Growth: Volumes grew 2.2x from FY21 to FY23, demonstrating strong consumer pull.

6. Premium Positioning: Strong foothold in the less price-sensitive premium segment, providing pricing power.

7. Scaled Manufacturing: Expanding capacity to 3 million hectoliters, with a fifth brewery coming online.

8. Path to Profitability: Management has indicated a path to operating profitability, a key milestone for the next stage of growth.

Risks to Consider

1. High Valuation: At a Mcap/Sales of 4.5x, the stock prices in significant future growth.

2. Continued Losses: The company is still EBITDA negative, and profitability timelines may shift.

3. Intense Competition: Faces competition from deep-pocketed global giants (AB InBev, Carlsberg, Heineken) and other local craft beer startups.

4. Raw Material Inflation: Highly susceptible to volatility in barley, glass, and aluminum prices.

5. Regulatory Risk: The alcohol industry is heavily regulated, with state-wise excise policies, distribution restrictions, and high taxation.

6. Geopolitical Risk: Dependence on barley imports exposes the company to global supply chain disruptions.

7. Unlisted Liquidity: As an unlisted company, shares are not traded on stock exchanges, and liquidity may be limited.

The Opportunity: Own a Stake in India’s Most Exciting Beer Brand

Bira 91 is not just a beer; it’s a lifestyle brand that has captured the spirit of a new India. With explosive growth, a world-class investor base, and a clear strategy to dominate the premium segment, Bira offers a high-risk, high-reward opportunity for investors looking to back a potential category king.

Ready to Invest in India’s Fastest-Growing Craft Beer Brand?

Buy Unlisted Shares of Bira 91 (B9 Beverages) exclusively through Unlisted Network.

Join the league of Sequoia and celebrities in backing the playful monkey.