B9 Beverages, the maker of Bira alcoholic beverages, has delayed interest payouts to some of its debt investors through fintech marketplace KredX, according to people aware of the matter. The New Delhi-based company’s revenue slumped and losses shot up in FY24, the last year for which financial details are available.
According to regulatory filings, revenue fell 22% to Rs 638 crore from Rs 824 crore a year before. Its net loss widened to Rs 749 crore from Rs 445 crore.
A retail investor who has debt exposure to Bira told ET that he’s not received payments in March and April for investments made via KredX.
B9 Beverages raised working capital debt through KredX using its unpaid invoices as security.
Typically, companies raise debt in this form from banks but startups such as KredX allow retail investors to make such investments as well.
Ankur Jain, founder of B9 Beverages, told ET the company has worked with KredX for over six years and has been meeting all obligations to platforms and lenders to the fullest. “Any delays on specific limits are pre-aligned with KredX in accordance with the provisions of the agreements and we are not in default of any obligations,” he said.
KredX did not respond to ET’s queries.
Liquidity troubles
Over the past year, B9 Beverages has borrowed around Rs 60 crore through fintech firms such as Yubi and venture debt funds like Alteria Capital, according to the Registrar of Companies filings. It has also picked up venture debt from Trifecta Capital and Anicut Capital.
Jain said there hadn’t been any delay in repayments.
“There are liquidity issues that the company is facing… but the management has told lenders that it is in the process of raising funds that will help it manage debt repayment,” one of the investors told ET.
Fundraising plan
Jain, through his holding company Day1 Advisors Pvt Ltd, and B9 Beverages are also in discussions to close an Rs 800 crore financing round. Of this, Rs 500 crore will be raised by Day1 Advisors through structured debt, and this will be used to buy stakes from B9 Beverages’ existing investors.
Day1 Advisors had acquired 10% of B9 Beverages by buying stakes from existing investor Peak XV Partners (formerly Sequoia Capital India) in FY24 by raising structured debt from Axis Capital. According to a credit rating report by Icra, the terms of the transaction state that Day1 and its promoters have pledged B9 Beverages equity as security against the borrowing.
As of March this year, Jain and his family and Japanese beverage firm Kirin held 20% each in B9 Beverages. Peak XV Partners held 14%, while Sofina had 6%.
Growth path
Founded in 2015, Bira has raised $457 million in equity funding over multiple funding rounds from large investors such as Peak XV Partners, Sofina, Sixth Sense Ventures, Kirin Holdings and others, according to Tracxn.
Last year, B9 Beverages closed a $50 million funding round through a mix of equity and debt. Tiger Pacific Capital acquired a 4% stake in the company by investing $25 million and Kirin Holdings paid another $25 million via external commercial borrowings (ECBs).
On April 21, The Times of India reported that the company had delayed salaries and vendor payments. ET reported in February that the company changed its name to B9 Beverages Ltd from B9 Beverages Pvt. Ltd. Compliance issues over this name change resulted in the firm having to write off inventory worth Rs 80 crore and halt sales for a few months.
“We had to re-register our products in each of the 27 states that we were operational in, with the new company name,” Jain said. “This transition started in Q4 FY24 and spilled over to H1 FY25, with the beginning of the new excise licence year in most of our states, causing an average disruption of three-four months, especially in peak summer quarter.”
Jain also cited policy changes in Andhra Pradesh and Delhi in the last few months that hit business in these geographies, which account for a substantial part of its revenue. But he said business had stabilised and the company grew 40% on-year in the last quarter of FY25.
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A retail investor who has debt exposure to Bira told ET that he’s not received payments in March and April for investments made via KredX.
B9 Beverages raised working capital debt through KredX using its unpaid invoices as security.
Typically, companies raise debt in this form from banks but startups such as KredX allow retail investors to make such investments as well.
Ankur Jain, founder of B9 Beverages, told ET the company has worked with KredX for over six years and has been meeting all obligations to platforms and lenders to the fullest. “Any delays on specific limits are pre-aligned with KredX in accordance with the provisions of the agreements and we are not in default of any obligations,” he said.
KredX did not respond to ET’s queries.
Liquidity troubles
Over the past year, B9 Beverages has borrowed around Rs 60 crore through fintech firms such as Yubi and venture debt funds like Alteria Capital, according to the Registrar of Companies filings. It has also picked up venture debt from Trifecta Capital and Anicut Capital.
Jain said there hadn’t been any delay in repayments.
“There are liquidity issues that the company is facing… but the management has told lenders that it is in the process of raising funds that will help it manage debt repayment,” one of the investors told ET.
Fundraising plan
Jain, through his holding company Day1 Advisors Pvt Ltd, and B9 Beverages are also in discussions to close an Rs 800 crore financing round. Of this, Rs 500 crore will be raised by Day1 Advisors through structured debt, and this will be used to buy stakes from B9 Beverages’ existing investors.
Day1 Advisors had acquired 10% of B9 Beverages by buying stakes from existing investor Peak XV Partners (formerly Sequoia Capital India) in FY24 by raising structured debt from Axis Capital. According to a credit rating report by Icra, the terms of the transaction state that Day1 and its promoters have pledged B9 Beverages equity as security against the borrowing.
As of March this year, Jain and his family and Japanese beverage firm Kirin held 20% each in B9 Beverages. Peak XV Partners held 14%, while Sofina had 6%.
Growth path
Founded in 2015, Bira has raised $457 million in equity funding over multiple funding rounds from large investors such as Peak XV Partners, Sofina, Sixth Sense Ventures, Kirin Holdings and others, according to Tracxn.
Last year, B9 Beverages closed a $50 million funding round through a mix of equity and debt. Tiger Pacific Capital acquired a 4% stake in the company by investing $25 million and Kirin Holdings paid another $25 million via external commercial borrowings (ECBs).
On April 21, The Times of India reported that the company had delayed salaries and vendor payments. ET reported in February that the company changed its name to B9 Beverages Ltd from B9 Beverages Pvt. Ltd. Compliance issues over this name change resulted in the firm having to write off inventory worth Rs 80 crore and halt sales for a few months.
“We had to re-register our products in each of the 27 states that we were operational in, with the new company name,” Jain said. “This transition started in Q4 FY24 and spilled over to H1 FY25, with the beginning of the new excise licence year in most of our states, causing an average disruption of three-four months, especially in peak summer quarter.”
Jain also cited policy changes in Andhra Pradesh and Delhi in the last few months that hit business in these geographies, which account for a substantial part of its revenue. But he said business had stabilised and the company grew 40% on-year in the last quarter of FY25.
