The Vanishing Fizz: How Bira 91’s Empire Cracked Overnight

The air in India’s bustling pubs and quiet beer aisles felt oddly thin.

Gone was the familiar bright yellow-and-black monkey logo that, for years, had been a ubiquitous symbol of youthful revelry across pubs, music festivals, and airport lounges.

Regulars, bewildered, would often ask, “Bro, why isn’t the Bira 91 stock coming?”

Retailers had no answers, merely shrugging at the persistent inquiries.

Distributors whispered of dry pipelines, employees of delayed salaries, and investors huddled in tense emergency calls.

A brand that once perfectly encapsulated India’s modern drinking culture, a startup darling with swagger, had simply gone silent.

This wasn’t a slow decline; it was an abrupt, almost overnight evaporation.

A billion-rupee empire, meticulously brewed over a decade, began to crack, all because of a seemingly innocuous change, a bureaucratic nightmare triggered by a single word.

This is not merely a tale of missteps; it’s a sobering lesson in how quickly the bubbles can burst when ambition outpaces operational reality.

In short: Bira 91, once India’s coolest beer brand, suffered a catastrophic collapse after a minor legal name change in late 2023.

This triggered a widespread regulatory freeze across India’s complex state-level alcohol industry, halting sales for months, leading to massive financial losses, investor exits, and internal strife, despite strong consumer demand.

The Meteoric Rise: Crafting a Cool India Story

The journey began in 2015, when Ankur Jain, a Delhi-born entrepreneur fresh from the US, returned with a singular vision: to brew India’s own signature craft beer.

He birthed Bira 91, a brand that was anything but conventional.

With its distinctive grinning monkey and a promise of fun, fresh, and distinctly Indian flavors like White, Blonde, and Boom, Bira 91 didn’t just sell beer; it sold an identity.

Initially an experiment brewed in Belgium, it quickly captured the imagination of a young, urban India.

Within a few short years, Bira 91 wasn’t just growing; it was exploding.

It became India’s fastest-growing beer brand, expanding its footprint across 550 towns and 18 countries.

Its vibrant bottles became an Instagram-ready symbol of urban cool, an undeniable force in India’s startup ecosystem.

This rapid success naturally attracted significant investment.

Global players like Kirin Holdings of Japan, Sequoia India (now Peak XV), Tiger Pacific, and Sixth Sense lined up, eager to bet on India’s burgeoning craft beer revolution.

By FY 2023, B9 Beverages, Bira 91’s parent company, reported a revenue of INR 824 crore and boasted an impressive valuation of nearly INR 4,400 crore in the unlisted market.

Its unlisted shares, trading at INR 950–1000 each, hinted at an impending IPO (Bira 91 Story, 2024).

The brand sponsored major events like the ICC T20 World Cup and five IPL teams, making it, for a fleeting moment, feel truly unstoppable.

The Ruin: One Word That Broke the Bottle

Then, in late 2023, as Bira 91 meticulously laid the groundwork for a 2026 IPO, a decision was made that would inadvertently unravel this carefully constructed empire.

The company opted to drop a single word – “Private” – from its legal name, transitioning from B9 Beverages Private Limited to B9 Beverages Limited.

On paper, it seemed a routine corporate step, a signal of maturity before listing on public exchanges.

But India’s alcohol industry operates under a unique, fragmented regulatory landscape.

Alcohol, being a state subject, means each of India’s states functions as its own regulatory domain.

For these excise departments, a “new legal name” effectively translates to a “new company.”

This meant Bira 91 suddenly faced an unimaginable task: re-applying for every single license and label approval from scratch, in every state where it operated.

There was no grace period, no shortcut, no exceptions.

The entire distribution network froze.

States like Delhi and Andhra Pradesh, which collectively accounted for over a third of Bira’s sales, immediately went offline.

Warehouses quickly piled up with INR 80 crore worth of unsellable beer – inventory brewed under the “old” name could no longer be legally sold (Bira 91 Story, 2024).

For four to six agonizing months, Bira 91, India’s coolest beer brand, found itself unable to legally sell a single can.

Founder Ankur Jain internally dubbed it a “catastrophic administrative oversight.”

But the damage was already done.

What was envisioned as a strategic move towards an IPO transformed into a regulatory quicksand, consuming the company’s momentum, cash flow, and, perhaps most crucially, its credibility.

By mid-2024, the financial fallout was stark: revenue plunged by 22% to INR 638 crore, while losses skyrocketed by 68% to INR 748 crore, surpassing its total revenue (Bira 91 Story, 2024).

The bubbles, indeed, had burst.

The Crash: Numbers Don’t Lie

The mid-2024 balance sheet of B9 Beverages painted a grim picture of a company in free fall.

The six-month sales blackout decimated INR 80 crore in inventory, as beer brewed under the previous name became unmarketable.

Warehouses across key regions like Delhi, Andhra Pradesh, and Maharashtra were clogged with stale stock, destined for write-off.

When a partial resumption of production eventually occurred, the market had shifted.

Distributors, facing their own pressures, had moved on.

Retailers, once eager to stock the distinctive monkey logo, had delisted the brand.

Consumers, once loyal to Bira’s vibrant offerings, had been forced to forget its taste, turning to competitors like Simba, BeeYoung, and Kingfisher Ultra who swiftly grabbed the vacated shelf space.

The financial results were devastating: Sales dropped by 22%, from INR 824 crore in FY23 to INR 638 crore in FY24.

Losses surged by 68%, hitting INR 748 crore, exceeding total revenue.

Cash flow turned negative by INR 84 crore, with liabilities surpassing assets by INR 619 crore.

Volume crashed from an impressive 9 million cases to a mere 6–7 million (Bira 91 Story, 2024).

Even investors, who once toasted Bira’s success, began to sober up.

BlackRock, reportedly in talks for a significant INR 500 crore infusion, pulled out (Bira 91 Story, 2024).

A smaller INR 100 crore rights issue offered temporary relief, but at a steep 55% discount, a clear indicator of deep distress.

The unlisted share price, once a high of INR 1000 in 2021, plummeted to INR 201 by late 2025, an 80% erosion in value (Bira 91 Story, 2024).

This was more than a financial collapse; it was a profound credibility crisis for India’s most celebrated craft beer startup.

Supply Chain Meltdown: An Invisible Lockdown

The name change didn’t just trigger regulatory headaches; it detonated Bira’s supply chain.

Each state excise department, acting independently, demanded fresh label registrations, new product codes, and reissued distribution licenses.

There was no central solution, only a labyrinth of individual state rules, endless paperwork, and unpredictable waiting periods.

Bishan Kumar, Editor-in-Chief of Spiritz Magazine, starkly highlighted the issue: “With a name change, every permit, licence, and label must be redone from scratch.

This process generally takes at least six months” (Bira 91 Story, 2024).

This translated into a logistical nightmare: production halted in July 2024, warehouses overflowed with expired beer, and retailers in major metros like NCR and Mumbai reported zero Bira stock for half a year.

Distributors, wary of regulatory penalties, refused new orders.

Employees began referring to it as “an invisible lockdown.”

Despite persistent consumer demand, the company was simply legally unable to sell.

An alcobev industry insider observed, “Once the permit loop began in multiple states, Bira’s supply chain broke, and working capital dried up” (Bira 91 Story, 2024).

The supply chain disruption created a vacuum, quickly filled by agile competitors.

Internal Unrest: The Human Cost of Mismanagement

As Bira 91’s financial stability eroded, internal tensions mounted, eventually boiling over.

By October 2025, a stark reality emerged: over 250 current and former employees formally petitioned B9’s board and major investors, including Kirin Holdings and Peak XV Partners, demanding founder Ankur Jain’s removal (Bira 91 Story, 2024).

Their allegations painted a grim picture: salaries delayed by 4–6 months, Provident Fund contributions unpaid for over a year, pending tax deductions, and unpaid vendors.

The once-celebrated “cool startup” culture had soured into widespread disillusionment.

Former employees accused management of operating like a family proprietorship, concentrating power among Jain, his mother, and his wife.

An insider’s report bluntly stated, “Bira came in strong, but there was never a clear sense of direction.

One hasty move after another — from snapping up The Beer Café to burning cash on IPL sponsorships.

This isn’t how you run an INR 4,000-crore company” (Bira 91 Story, 2024).

While Jain denied receiving a formal petition, the visible erosion of morale, trust, and reputation was undeniable.

Corporate Governance Under Fire

The chaos at Bira 91 brought to light fundamental structural flaws.

It wasn’t just about a single administrative error; it exposed a deeper systemic issue: a striking absence of regulatory foresight prior to the name change, a clear lack of expert advisors during the transition, over-dependence on short-term loans, and an aggressive expansion strategy that seemingly outpaced the establishment of robust internal controls.

For many industry observers, Bira 91’s spectacular downfall serves as a cautionary case study in how a startup culture – often fixated on growth, brand coolness, and hype – can implode dramatically when basic principles of corporate governance are neglected.

Brewing Battle and the Fight to Fizz Again

As Bira 91’s financial situation deteriorated, its investors, facing substantial losses, began to exert their influence.

In a dramatic turn, Kirin Holdings and Anicut Capital – Bira’s largest shareholder and a key lender – invoked shares pledged by B9 Beverages.

This unprecedented move granted them control of The Beer Café, one of Bira’s few profitable subsidiaries and a crucial part of its hospitality ventures.

The Beer Café, with its 42 outlets, was effectively stripped from Bira 91.

Ankur Jain retaliated, filing a legal petition in the Delhi High Court, arguing the lenders’ actions were “in contravention of contracts and illegal.”

On October 17, 2025, the Delhi High Court issued an interim order, restraining Anicut from selling or creating third-party rights over BTB’s shares, offering Jain a temporary reprieve.

However, the battle lines were irrevocably drawn.

Industry insiders viewed this not merely as a dispute over collateral, but a fight for control.

There were credible reports that major shareholders, including Peak XV, Sofina, Sixth Sense Ventures, and Kirin, had discussed Jain’s removal during a September investor call, contingent on any fresh funding.

While Jain denied an ultimatum, the fracturing of leadership and investor confidence was painfully clear.

The Attempted Comeback: A Fragile Reboot

Despite the profound challenges, Bira 91 showed signs of resilience, refusing to go flat.

By mid-2025, the brand began the arduous process of clawing its way back.

Key markets like Delhi and Uttar Pradesh successfully came back online after securing new excise licenses, signaling a critical first step.

New manufacturing partnerships helped revive limited production, and a strategic overhaul saw a new CFO and senior leadership team brought in to professionalize operations.

The company also managed to raise INR 85 crore through a rights issue at INR 325 per share, strategically trimming costs and refocusing efforts on profitable metro markets (Bira 91 Story, 2024).

Q4 FY25 even presented early glimmers of recovery, with a 40% growth over the preceding quarter (Bira 91 Story, 2024).

Bira 91’s unlisted shares, which had plummeted, stabilized around INR 200–210, a far cry from its 2021 peak but a clear indication that the financial bleeding had slowed.

The company also initiated talks with Global Emerging Markets (GEM) for a substantial USD 132 million fundraising, a move that, if successful, could provide the necessary capital to regain its fizz (Bira 91 Story, 2024).

Playbook You Can Use Today: Lessons from the Bottle

Bira 91’s journey offers potent lessons for any business, especially startups navigating complex regulatory environments.

1. Prioritize Regulatory Due Diligence: Before any significant corporate action, especially in highly regulated sectors like the alcohol industry India, conduct exhaustive research into all state-level implications.

   A minor legal change can trigger a major operational shutdown (Bira 91 Story, 2024).

2. Invest in Governance & Compliance Expertise: Don’t let brand hype overshadow basic operational controls.

   Ensure you have expert legal and compliance advisors integrated into decision-making, not just as an afterthought.

3. Diversify Supply Chain & Licenses: Relying on a single, centralized process where individual state approvals are mandatory is inherently risky.

   Explore ways to build resilience and redundancy into your supply chain (Bira 91 Story, 2024).

4. Maintain Cash Flow & Working Capital: The sales blackout quickly dried up Bira’s working capital.

   Always have robust financial buffers and a clear plan for liquidity, especially when facing potential operational disruptions.

5. Foster Transparent Employee Relations: Neglecting employee welfare, like delayed salaries or unpaid provident funds, can lead to significant internal unrest and reputational damage.

   Transparent communication and consistent fulfillment of commitments are non-negotiable (Bira 91 Story, 2024).

6. Balance Growth with Internal Strength: Aggressive expansion is exciting, but it must be matched by equally aggressive strengthening of internal systems, controls, and risk management.

Risks, Trade-offs, and Ethics: The Sobering Reality

The Bira 91 saga highlights significant risks.

The trade-off between speed-to-market (startup mentality) and meticulous compliance can be catastrophic.

Ethically, the allegations of delayed employee payments and concentration of power, if true, represent a failure in stewardship that undermines trust and directly impacts livelihoods.

Mitigation involves establishing clear lines of accountability, independent board oversight, and a culture that values compliance and employee well-being as much as growth metrics.

Tools, Metrics, and Cadence: For a Stable Ship

For businesses, ensuring regulatory compliance challenges don’t derail growth requires dedicated focus.

Compliance Management Software

Tools like LogicManager or VComply can centralize license tracking, regulatory updates, and compliance tasks.

ERP Systems

Robust ERPs are crucial for real-time inventory management, sales tracking, and financial reporting, allowing for quick identification of issues.

KPIs

• Regulatory Compliance Rate: Percentage of active licenses and permits fully compliant.
• Inventory Turnover Ratio: Essential for perishable goods; monitors stock movement.
• Employee Satisfaction Scores: Critical for flagging internal unrest early.
• Working Capital Ratio: Indicates liquidity and ability to meet short-term obligations.
• Cash Burn Rate: Measures how quickly the company is using up its cash reserves.

Cadence

• Weekly: Operational syncs on supply chain status and sales data.
• Monthly: Financial reviews, compliance checks, and employee sentiment surveys.
• Quarterly: Strategic reviews with legal/compliance teams, board meetings for governance oversight.
• Annually: Comprehensive regulatory audits and strategic planning sessions.

FAQ

Q: How do regulatory challenges specifically impact the alcohol industry in India?

A: India’s alcohol industry is uniquely complex because each state has its own excise department and regulations.

This means a single national change, like Bira 91’s legal name alteration, requires fresh approvals in every state, creating significant regulatory compliance challenges and potential sales blackouts, as detailed in the ‘Bira 91 Story’ (2024).

Q: What is meant by ‘corporate governance’ in the context of Bira 91’s downfall?

A: Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled.

Bira 91’s downfall highlighted failures in governance, including a lack of regulatory foresight, weak internal controls, and allegations of power concentration, contributing to the crisis (Bira 91 Story, 2024).

Q: How can startups avoid a ‘supply chain meltdown’ like Bira 91’s?

A: Startups, especially those dealing with perishable goods and complex regulations, must diversify their supply chain, ensure robust contingency plans, and maintain strong relationships with distributors.

Proactive management of legal and licensing requirements in all operating regions is crucial to prevent disruptions (Bira 91 Story, 2024).

Q: What are ‘unlisted shares’ and how did their value change for Bira 91?

A: Unlisted shares are those of a company not traded on a public stock exchange.

Bira 91’s unlisted shares, once valued at INR 950–1000 in December 2021, crashed to INR 201 by late 2025, reflecting an 80% erosion in value due to the company’s financial and operational crises (Bira 91 Story, 2024).

Q: What role did investors play in Bira 91’s crisis and recovery efforts?

A: Investors initially fueled Bira 91’s rapid growth but became increasingly concerned by its financial woes.

BlackRock pulled out of a significant infusion, while major shareholders like Kirin Holdings and Anicut Capital eventually seized a key asset, The Beer Café.

These investors later played a role in pushing for leadership changes and approving rights issues for recovery (Bira 91 Story, 2024).

Conclusion

The story of Bira 91 is a potent, bittersweet saga of ambition, innovation, and an unexpected fall from grace.

It began with the audacious dream of an entrepreneur, Ankur Jain, to give India its own ‘cool’ beer, a dream that materialized into a brand that captured a generation’s imagination and soared to a INR 4,400 crore valuation.

Yet, this tale serves as a powerful reminder that in the exhilarating race of startup growth, foundational elements – rigorous regulatory compliance, robust corporate governance, and a deep understanding of complex market nuances – are not optional.

A single word, an administrative oversight, became the unexpected undoing, freezing an entire business and shaking investor confidence.

While Bira 91 is now engaged in a valiant crisis management effort, attempting a fragile reboot, its journey highlights that success can evaporate faster than beer bubbles if the underlying structures aren’t rock-solid.

The monkey logo is slowly returning to shelves, and its loyal fans are rediscovering that familiar taste, but the fundamental question lingers: for India’s once-coolest beer brand, will it ever truly regain its fizz, or will its story forever be a cautionary tale in the annals of the Indian startup failure?

For leaders and entrepreneurs, the lesson is clear: build with care, understand the ground beneath your feet, and never underestimate the power of a single word in a regulated world.

References

Article/Narrative. (2024). “Bira 91 Story: How India’s Coolest Beer Brand Lost Everything Overnight.” (URL: N/A)