Craft beer maker B9 Beverages, which owns Bira 91, has raised $20 million in a bridge round from existing backers Sequoia Capital and Sofina.
In May, last year, Bira 91 had picked up $4.3 million in its pre-Series C round led by Sixth Sense Ventures, at a post-money valuation of $246 million. The fresh round is a part of a larger $30 million pre-Series C round.
The Delhi-based company hasn’t disclosed its valuation in this round. Till date, it has scored over $130 million across several funding rounds.
According to an ET report, the fresh capital will be deployed towards business expansion in India with a focus on increasing market share in the premium beer segment. Currently, it claims to have a market share of more than 5% of overall beer, and over 20% share in the premium beer category.
Due to the ongoing nationwide lockdown, all businesses have to bear the cost, and beverage companies are hardly-hit. Due to the shutdown of bars, pubs, and alcohol shops, the revenue for such businesses has almost come down to zero for the past one month.
In the past couple of years, Bira 91 has been receiving competition from global plus local players. Its stagnant growth also reflected in the company’s balance sheet for FY19.
The five-year-old company had registered a mild growth of 15.4% in revenue to Rs 183 crore in FY19 as compared to Rs 158.6 crore in FY18. During the same period, it couldn’t control its losses, which grew by 2X to Rs 202.2 crore.
The fresh funding indeed will boost Bira 91’s confidence and growth plan. As per the latest development, the company was looking to launch 40-50 different limited release beers in the next one year.