BIRA91

EVOLUTION
The premium beer market, B9 Beverages—the maker of India’s
first bottled craft beer Bira 91—is entering the mass market with
its sub-brand, Boom. Two variants of Boom are likely to be
competitively priced in the range of Rs 130 to Rs 185 for 650
ml. The extra-strong offering pitches it directly against the likes
of Kingfisher, and Carlsberg, companies that have dominated
the strong beer segment, which is pegged at 80% of the overall
market in the country.

“Boom is our first mass-market brand, and the biggest product

launch for us in two years,” says Ankur Jain, founder and chief
executive officer of B9 Beverages. “It will compete against
Kingfisher Strong and Tuborg Strong,” he says, adding that the
move is driven less by competition and more by the realization
that consumers across markets and segments are looking for
different flavors.

Though the trigger for Boom is to ostensibly bring flavored beer to

the masses, the plan is to expand the reach of the company,
which has been playing in the premium segment in India, just 10
percent of the beer market. Boom, Jain lets on, will expand the
consumer base and cover the remaining 90 percent of the market.
The launch of Boom also stems from the need to cater to a large
segment of a population in tier-II cities and beyond, who are not
comfortable paying Rs 100 for a 330 ml bottle, an entry price point
for Bira 91.
The changing dynamics of the beer market also makes it
imperative for Bira to diversify. “There is a stampede to enter into
the craft beer space,” reckons Harish Bijoor, founder of an
eponymous branding consultancy firm. While the newbies want to
play niche, the biggies from the space of strong and old beer
brands want to taste premiums here as well. “This is going to be
Bira’s real test,” says Bijoor. “The game for Bira begins now as it
enters the real market. Boom can try this game for sure. However,
beating a Kingfisher Strong is not going to be an overnight feat,
and will need staying power backed by distribution.”
 FOUNDER

B9 Beverages Pvt Ltd was founded by Ankur Jain, an

entrepreneur who moved to the United States in 1998. Jain
completed his degree in Computer Science from Illinois Institute
of Technology, Chicago. He briefly worked with Motorola before
starting his first venture in Healthcare Revenue Management
in New York which was later sold to an undisclosed healthcare
provider network in 2007.
Jain moved back to India and started his first beer venture in
2008; which was importing traditional craft beers from Europe and
US to India. B9 Beverages launched Bira 91 beer in early 2015.

People Reaction!
In 2015, when Ankur Jain, a computer science graduate from
Chicago, revealed his audacious plan to liquor distributors to roll
out an indigenous craft beer brand, the reaction was near
unanimous: “You have lost your mind!” Beer, after all, is a sector
where a handful of powerful brands—mostly global—rule the
roost.

Why do startup struggle?

Every startup dreams of global expansion but there are various
factors that stop them from expanding their footprint from the
home market, the biggest being money. Entrepreneurs need at
least some things in place to convince the investors that they
know what they’re doing.
Bira Founder and CEO Ankur Jain faced a similar challenge when
he was making investors believe in his business plan of
international expansion. One of the fastest growing craft beer
brands out of India, Bira 91 has just received its third round of
funding of USD 50 Mn led by Belgian investment firm, Sofina. The
latest investment brings the company to over $100M in funding to
date.
“New brands can be created as consumers love innovation,” says
Jain, who honed his ‘craft’ in alcoholic beverages since 2009. It
was then that he started importing and distributing premium craft
beer brands from Belgium, Germany and the US through his
company Cerana Beverages.

In June 2014, Jain had raised seed funding, before launching Bira
91 the following year. “We have the potential to become the brand
of choice for Indians,” he says.

“New brands can be created as consumers love

innovation. We have the potential to become the
brand of choice for Indians... we have to stay fresh as
a brand and product.”
By-Ankur jain CEO(Bira91)
 FUNDING
Ankur Jain raised $1.5 million from a group of friends when he
had initially started B9 Beverages Pvt. Ltd. In January 2016, B9
Beverages Pvt Ltd received its first round of funding with $6
million (INR. 40 Crore) from Sequoia Capital (which was
Sequoia’s first investment in the Alcohol Beverage segment).
This Series A funding also saw participation from Angel
investors of India like Kunal Bahl and Rohit Bansal (Co-founders -
Snapdeal), Deepinder Goyal (Zomato), Ashish
Dhawan (ChrysCapital) and Mayank Singhal.
In 2018, the company raised a further amount of $50 million
from Sofina, a Belgian family owned fund and its existing
investors.

In May 2019, Bira 91 raised the funding of $4.3M from Sixth

Sense Ventures in its Pre-Series C round.
 BIRA91 Brand

The name Bira does not stand for anything literally, however
colloquially it is how a Punjabi would call his brother and 91
represents India’s Country Code. The reverse B in the logo
represents a spirit of irreverence. The monkey mascot was
designed considering the urban millennial as the key consumer of
Bira 91 and with the idea of presenting the brand with a playful
identity.[10]
The company aspired Bira 91 to be a brand that is an integral part
of a tech immersed, creative, urban, diverse and modern world of
the 21st century.[6]
Bira 91 has recently launched its brand merchandise that includes
T-shirts, growlers, bags, ice bucket and beer mugs.
 MILESTONE’S
ACHIEVED
IN 2015:-

• Launched Bira 91 White and Bira 91 Blonde in kegs in Hauz

Khas Village, a hipster neighbor hood in Delhi.
• Sales exceeds 7000 cases a month as brand goes viral
through word-of-mouth.
• Hire first “CITY HEAD” and launch operation in Mumbai -
home to India’s most vibrant beer scene.
• Raise first round of institutional money as Sequoia Capital
India invest’s $6m in Bira91 Launch operation in Bangalore –
India’s pub city.

IN 2016:-
• Preview the brand in New York City with a partnership with
the Tribeca Film Festival. Bira 91 makes an appearance on the
1
red carpet along with the stars! New Yorkers fall for the monkey!
• Sales exceed 20,000 cases a month
• Bira 91 faces severe supply shortages as India production
gets delayed and demand skyrockets beyond expectations
• India production goes live with first brewery in Indore
(capacity of 150,000 cases per month)

IN 2017:-
• Bira 91 receives 2nd round of investment from Sequoia
Capital
• Bira 91 launches in cans – its third packaging type after kegs
and bottles
• Sales exceed 100,000 cases per month
• Bira 91 launches in more cities in India
• Bira 91 Strong launched. The third liquid in the portfolio
A “high intensity wheat beer” with a top-fermenting yeast and
big flavor
• Bira 91 Light launched. India’s first low-calorie beer with just
90 calories Low calorie, low carb beer with taste. Less
calories than a glass of champagne or milk
• Nagpur – our 2nd brewery in India goes live.
Indore brewery also expanded to give total production
capacity of over 300,000 cases per month
• Sales exceed 300,000 cases per month
Bira 91 becomes the largest draft brand in India

IN 2018:-
• Starts production in United States (Upstate NY)
 Expands in North East US to New York City, New Jersey,
Philadelphia and Boston
• Bira91 becomes the number1 premium brand in Delhi and
several other markets
• Belgium’s Sofina capital leads $50million round of
investment – the company’s third round of institutional
capital raise
• Bira91 launches in Singapore and Nepal
 SOME OF THE
STARTUP SCHEMES
BY INDIAN
GOVERNMENT

“Entrepreneurship is no longer being condemned as

jugaad.”
 Startup Scheme 51: Promoting Innovations in Individuals,
Startups and MSMEs (PRISM)

Launched In: N/A

Headed By: Council of Scientific & Industrial Research

Industry Applicable: Sector-agnostic

Eligibility: The scheme runs in two phases. For PRISM I, any Indian
citizen including student innovators can apply. For PRISM II, PRISM
innovators or innovators who have successfully demonstrated proof of
concept with the support of government institution/agency; PRISM - R
and public funded – R&D institutes/ autonomous institutions/
laboratories/ academic institutes etc. are eligible &D proposals.

Overview: The scheme provides grants, technical guidance and

mentoring to individual innovators by incubating their idea towards the
creation of new enterprises in phases. It also provides grant-in-aid
support to technology solution providers developing technology solutions
aimed at helping MSME cluster.

Startup Scheme 53: Rapid Grant for Young Investigator

(RGYI)

Launched In: N/A

Headed By: Department of Biotechnology (DBT)

Industry Applicable: Healthcare & life sciences

Eligibility: The Principal Investigator should be below 40 years holding

an independent position (and within 10 years of receiving a PhD). Each
application should have Co-PI (preferably below 50 years) with prior
experience in grant management. Also, applicants must be from non-
profit organizations and should have demonstrated a promising track-
record of early achievements appropriate to his/her research field and
career stage, including significant publications (as the main author) in
international, peer-reviewed, scientific journals.

Overview: The scheme fosters creative research in various fields of

biotechnology (medical, agriculture, animal biotech, environment and
industry, etc.) to enhance the early career development of young
investigators. The programme aims to provide the first extramural grant
to establish labs and initiate research in the frontier areas of
biotechnology.

Startup Scheme 44: High Risk-High Reward Research

Launched In: N/A

Headed By: Science and Engineering Research Board (SERB)

Industry Applicable: Chemicals, technology hardware, healthcare & life

sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR
(augmented + virtual reality), automotive, telecommunication &
networking, computer vision, construction, design, non-renewable
energy, renewable energy, green technology, fintech, Internet of Things,
nanotechnology, social impact, food & beverages, pets & animals,
textiles & apparel.

Eligibility: Indian citizen residing in India, holding a regular

academic/research position in a recognized institution can apply under
this scheme. The proposals can be submitted by an individual or by a
team of investigators.

Overview: SERB aims at supporting proposals that are conceptually

new and risky, and if successful, expected to have a paradigm-shifting
influence on science and technology. Proposals that address scientific
issues which will result in ‘incremental’ knowledge will not be supported.

Fiscal Incentives: The research grant covers equipment, consumables,

contingency and travels apart from overhead grants. No budget limit is
prescribed for these projects.
 Startup Scheme 40: Growth Capital and Equity Assistance

Launched In: N/A

Headed By: Small Industries Development Bank of India (SIDBI)

Industry Applicable: Sector-agnostic

Eligibility: The eligible stakeholders under this scheme include an

MSME as per the definition of Government of India (MSMED Act),
SIDBI’s existing customers (meeting internal rating criteria) and units
with past three years of profitability and two years of satisfactory banking
credit track record (meeting internal credit rating criteria). Acceptable
external rating from CRISIL, ICRA, D&B, SMERA etc. would be
desirable.

Overview: This scheme by the Indian government provides assistance

to existing Small and Medium Businesses in need of capital for growth.
The assistance is provided in form of mezzanine/convertible instruments,
subordinated debt and equity (in deserving cases). This quasi-
assistance has a higher moratorium on repayment and a flexible
structuring.

Fiscal Incentives: Under this scheme, the MSMEs are helped to

leverage equity/sub-debt assistance from SIDBI for raising higher debt
funds. It also helps to avoid the complexities of enterprise valuation, exit
issues etc.– associated with equity investments. Information regardin the
amount of growth capital provided to the MSME enterprises is not
available.
 Startup Scheme 36: Stand Up India

Launched In: April 2016

Headed By: Small Industries Development Bank of India (SIDBI)

Industry Applicable: Sector-agnostic

Eligibility: The enterprise can be in trading, manufacturing, or services.

In the case of non-individual enterprises, at least 51% of the
shareholding and controlling stake should be held by an SC/ST or
woman entrepreneur. The borrower should not be in default to any bank
or financial institution.

Overview: This scheme by the Indian government facilitates bank loans

between INR 10 Lakhs and INR 1 Cr to at least one Scheduled Caste or
Scheduled Tribe borrower and at least one women borrower per bank
branch for setting up a Greenfield enterprise.

Fiscal Incentives: Composite loan between INR 10 Lakhs and INR 1 Cr

to cover 75% of the project cost can be taken up, inclusive of the term
loan and working capital. The stipulation of the loan being expected to
cover 75% of the project cost would not apply if the borrower’s
contribution along with convergence support from any other schemes
exceeds 25% of the project cost. The rate of interest would be the lowest
applicable rate of the bank for that category (rating category) not to
exceed (base rate (MCLR) + 3%+ tenor premium).

Startup Scheme 15: Infrastructure Development Scheme

Launched In: N/A

Headed By: National Small Industries Corporation (NSIC)

Industry Applicable: Sector-agnostic

Eligibility: space shall be allotted to IT/ITES/MSME units not registered

with STPI (Software Technology Parks Of India Scheme). It will be
allotted to only those units that are falling under the overall definition of
MSME as per the guidelines of Ministry of Micro, Small and Medium
Enterprises. Units other than MSMEs such as Banks/PSUs/financial
institutions, corporate sectors etc. would also be considered for allotment
on a case-to-case by merit.

Overview: This scheme by the Indian government aims to solve the

office space issues of MSMEs. The Corporation has commercial
buildings at New Delhi, Chennai, and Hyderabad. Apart from other
schemes, the Corporation provides office space on a lease rental basis
to prospective units.

Fiscal Incentives: The sizes of available office space range from 467
sq.ft. to 8,657 sq.ft. The unit has to deposit interest-free Security deposit
equivalent to six months rent refundable at the time of vacation of
premises. The rentals are reviewed every year.