Bira in talks to raise $132 million, GEM may invest as craft beer maker eyes recovery

Indian craft beer maker Bira is in talks to raise $132 million in its biggest ever fundraising, with New York-based investment group Global Emerging Markets (GEM) as one of the potential suitors, according to term sheets seen by Reuters.

Bira has become popular over the years amid a thriving social drinking scene across the country. The market is still dominated by likes of AB InBev, Carlsberg and Heineken, with Bira having an under 5% share.

Term sheets seen by Reuters show Bira is in talks to raise $50 million via the equity route from alternative investment group GEM, and another $82 million via structured credit.

It's not clear what stake Global Emerging Markets would pick up in Bira, and the group did not respond to Reuters queries.

"We confirm that we have received term sheets for substantial investments in the company in the form of structured debt and equity," Bira CEO Ankur Jain told Reuters, declining to share investors' names or amounts.

In 2022, Bira acquired beverage chain operator The Beer Cafe to get access to more restaurants and pubs.

But India remains a tough regulatory environment for liquor companies.

Jain said Bira in 2023/24 changed its registered name from B9 Beverages Private Ltd to B9 Beverages Ltd. The move he said caused 800 million rupees ($9 million) in losses as it triggered months of business disruption as state regulations required each brand and label to be registered again across dozens of Indian states.

Any funds raised will be used for working capital needs and clear pending dues, adding that the "company has been making serious efforts for business recovery including restructuring its sales and supply chain operations", he added.

Launched in 2015, Bira has so far raised $210 million and was valued at $450 million two years ago. It is also counts Japan's Kirin and Peak XV, formerly known as Sequoia Capital India, among its investors.