Anicut Capital Takes Control Of Bira 91 Founder Ankur Jain’s Stake

The Founder's Exit and Lender Intervention

Anicut Capital, an alternative investment firm, has reportedly taken control of over 17% of Bira 91 founder Ankur Jain and his family's stake in B9 Beverages, the parent company of the popular beer brand. This significant development follows Jain's recent resignation from the startup's board and his relinquishing of executive control and ownership. The move comes after a prolonged dispute with lenders and investors, marking a pivotal shift in the leadership and ownership of the debt-laden company.

Under the terms of the settlement, Jain and his family have exited B9 Beverages with immediate effect. In return, lenders have agreed to withdraw their claims and legal proceedings, and release the personal guarantees Jain had provided against the startup's borrowings. Jain publicly apologized to employees for delays in clearing their dues, acknowledging that Bira 91's inability to raise fresh capital over the past 18 months intensified pressure from its financial backers.

Bira 91's Financial Downfall

B9 Beverages has been grappling with a severe financial crisis, which led to the suspension of production and a ballooning of its debt and liabilities to approximately ₹1,000 Cr, though employees claimed the figure was higher, exceeding ₹1,400 Cr. This substantial financial distress necessitated a comprehensive revival plan aimed at clearing statutory, employee, and vendor dues, and ultimately restarting operations. The company's troubles escalated after its conversion to a public company, which triggered new excise approval requirements across various states, disrupting production and sales.

The financial woes are further underscored by B9 Beverages reporting a net loss of ₹748 Cr in FY24, with accumulated losses reaching ₹2,117.9 Cr and negative cash flow of ₹42.2 Cr. Its auditor also issued a warning that current liabilities exceeded assets by ₹487 Cr as of March 2024. Employees alleged unpaid salaries since July 2024 and un-deposited provident fund contributions for over 15 months, painting a grim picture of the company's internal financial management. Earlier, the board had also waived the recovery of over ₹4.5 Cr in excess remuneration paid to Jain, his wife, and his mother.

The Path to Restructuring and Revival

With Anicut Capital now at the helm, the firm is expected to nominate three directors to B9 Beverages’ board, including cofounder IAS Balamurugan, and spearhead the startup’s restructuring efforts. The primary objective is to stabilize the company, clear its outstanding obligations, and pave the way for a sustainable future. This recapitalization is anticipated to be supported by existing investors and lenders, including prominent shareholders like Peak XV Partners, Sofina, and Japan-based Kirin Holdings, alongside key lenders such as Anicut Capital and Hero Corporate Services’ family office.

The restructuring aims to provide Bira 91 with the fresh capital and a clear balance sheet it desperately needs, allowing a new management team to build the next phase of the business without the burden of past financial challenges. This intervention highlights a growing trend in the Indian startup ecosystem where financial distress in high-growth companies leads to significant shifts in ownership and control, with investment firms stepping in to salvage and restructure valuable brands.