BlackRock is in advanced discussions to invest over ₹500 crore in B9 Beverages, the parent company of Bira91, through structured debt. This funding aims to support the company’s financial restructuring and growth plans.
📉 Bira91’s Financial Challenges
B9 Beverages has faced significant financial hurdles in recent times. In FY24, the company reported a net loss of ₹748 crore, with revenues declining to ₹638 crore from ₹927 crore in FY23. Sales volumes also dropped from 9 million cases to 6–7 million cases. These challenges were exacerbated by operational disruptions, including regulatory delays due to a corporate name change and an ₹80 crore inventory write-off. Outlook Business
💰 Strategic Use of Funds
The proposed ₹500 crore investment from BlackRock is structured as performance-linked debt. This means that the interest payable by B9 Beverages could reduce if certain performance targets, such as revenue and EBITDA milestones, are achieved.
The funds are intended to:
- Buy out early investors: Facilitating the exit of early-stage investors like Peak XV Partners and Sofina.
- Infuse fresh capital: Strengthening the company’s balance sheet and supporting operational needs.
Additionally, B9 Beverages plans to launch a ₹100 crore rights issue on May 22, 2025, expected to close in June, as part of a broader ₹850 crore fundraising effort.
🚀 Looking Ahead
BlackRock’s potential investment signals confidence in Bira91’s brand and growth prospects. The structured debt approach provides an incentive for the company to meet performance targets, aligning the interests of both parties.
This capital infusion could be pivotal in helping B9 Beverages navigate its current challenges and position itself for future growth in the competitive alcoholic beverages market.
