By Raunak Haldipur
In an earlier article, I have already covered the success story of Bira 91. Ankur Jain, after completing his Bachelor’s degree in Computer Engineering from Illinois Institute of Technology, Chicago, began his entrepreneurial journey through a healthcare information startup in India. He started a company called Cerana Beverages in 2009 that imported premium craft beer brands from Belgium, Germany and the US and marketed them in Delhi, Mumbai, and Bengaluru, in 330ml bottles. Cerana Beverages, now known as B9 Beverages, is an import and distribution company which owns India’s first and largest draft beer dispense network in restaurants and bars. It imports and distributes a portfolio covering major beer styles and more than 20 brands.
The confidence and growth
The question one should ask is how such a young company can aim for an IPO in such a short span of time. The answer lies in the funding it has been getting from venture capitalists. In the Series A round, Bira received a $6 million funding from Sequoia Capital. One shouldn’t look merely at the amount, but at what is truly special about this investment. The investment in Bira 91 is Sequoia Capital’s first investment in a local alcoholic beverage brand. B9 Beverages has raised about $30 million in four funding rounds so far. Ankur Jain also mentioned that they have sufficient funds and are not looking to raise any money in the short term. What is commendable is that Bira has managed to get a huge chunk of the market share through word-of-mouth in India, a country where the marketing of alcoholic beverages is highly regulated.
Consumer taste and the concept of craft beer
Looking at the success of Bira, one can say that they entered the market at the right time, one when the youth of the nation has developed a different take when it comes to alcohol. The sales of craft beer are also on the rise in India as young, affluent consumers in big cities are choosing brands and pubs that make lighter brews and promise fresher ingredients. Consumers are slowly shifting from buying beer from mass brands and going for more niche and flavoursome beer which they find in Bira.
The IPO and future plans
Bira’s craft beer, which had a niche market in India, has changed the business. United Breweries, which is the market leader in beer, has announced that they will introduce craft beer this year. A niche segment player’s strategy has caught the attention of a market leader, and all of them are trying to catch on the bandwagon. This is enough indication that craft beer is here to stay and grow in the future.
B9 Beverages, like any startup in India, is yet to make profits. They are doing really well when it comes to other metrics like market-share, but they are yet to see profits in India. They are currently making an annual revenue of around ?200 crores. However, by fiscal 2019, B9 Beverages plans to breakeven by doubling its turnover to ?400 crores. With such strong financials and growth plans, it is no surprise that Ankur Jain is eyeing an IPO in the next 3-5 years.
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