Bira91 Maker B9 Beverages Faces Liquidity Crunch, Delays Interest Payouts Amid Funding Plans

India’s craft beer company, B9 Beverages, maker of the popular Bira91, has recently been under scrutiny after postponing interest payments to a few retail investors who funded the corporation through the fintech receivables platform KredX.

This development comes at a crucial juncture for B9, which is racing to stabilise its balance sheet ahead of an Bira Upcoming IPO planned 2026 . With marquee investors like Peak XV Partners and Sofina onboard, the organisation’s efforts to manage debt obligations raises questions about its increased growth -at-all-costs strategy and the wider demanding situations going through India’s craft beverage sector.

About B9 Beverages and the Rise of Bira91

Founded in 2015, B9 Beverages has placed itself as one in every of India’s maximum prolific gamers within the rapidly evolving craft beer zone, first-rate regarded for its flagship label Bira91. The organization was conceived via entrepreneur Ankur Jain, who returned to India after stints abroad and acknowledged an opening in the marketplace for flavorful, present day beers that might rival traditional Indian brands and imported alternatives. 

Bira91 quickly won and gained traction via imparting wheat beers, lagers, ciders, and seltzers, with branding that resonated strongly with urban city millennials and the expanding middle class. 

The organisation has attracted substantial equity funding, raising to $457 million from reputed international and Indian backers like Peak XV Partners, Sofina, Sixth Sense Ventures, and Kirin Holdings.

How B9 Beverages Uses Kredx for Working Capital

As an FMCG company operating on large volumes and slim margins, B9 Beverages faces considerable working capital requirements. Traditionally, such operational funding needs were addressed via bank loans—where companies borrow against assets or based on financial strength. However, the emergence of fintech platforms like KredX has introduced a more dynamic way to access short-term liquidity.

The controversy centres on B9 Beverages’ working-capital arrangements with KredX, an RBI-regulated Trade Receivables Discounting System (TReDS) platform. The company used KredX to pledge unpaid invoices from distribution partners and secure funding, effectively turning outstanding receivables into short-term cash for day-to-day operations.

KredX, which received its final RBI nod for TReDS operations in January 2025, is designed to offer MSME’s faster access to working capital and improve liquidity by connecting them to a diverse pool of lenders and investors.

For small investors who provided debt via KredX, March and April 2025 brought an unwelcome surprise: no scheduled interest payouts appeared in their bank accounts. This made many question whether B9 was facing deeper repayment trouble.

Company’s Response: “No Default”

In the H1 FY25, some retail investors who had loaned money to B9 Beverages via KredX, which began reporting missed interest payments for March and April. 

Founder Ankur Jain responded to these concerns in major financial dailies, emphasizing that there is technically no default. He explained that “any delays are pre-aligned with KredX under the company’s agreements” and B9 Beverages has always remained compliant across its six-year partnership with the platform. In simple terms, the company claims that the delay is allowed under the flexibility of their agreement with  KredX, not a breach of obligation.

Nevertheless, for investors used to predictable monthly payouts as a key selling point for supply chain debt, the delays have triggered caution, particularly given the backdrop of B9’s deteriorating liquidity.

There are a few key reasons for this cash crunch:

Sales Disruption from Name Change: In late FY24, the company rebranded from B9 Beverages Private Ltd to B9 Beverages Ltd. This necessitated re-registration and re-approval of product labels across 27 Indian states, disrupting sales channels and causing inventory pileups.

Inventory Write-Off: The name change led to a forced write-off of inventory worth ₹80 crore, directly reducing operating revenue and liquidity.

Sales Slump and Losses:  Revenue dropped sharply due to these disruptions, while the company still faced fixed costs and expansion expenses.

Debt Accumulation: Over the past year, B9 raised ₹60 Cr via fintech platforms like Yubi and venture debt funds (Alteria, Trifecta). 

Market Pressures: Increased competition from local and international craft and premium beer brands added strain, further diminishing B9’s ability to recover quickly.

Volume Reduction: Sales volume dropped substantially, from 9 million cases in FY23 to between 6 and 7 million cases in FY24, amplifying the impact of revenue shortfalls.

Financial Snapshot: Revenue Slows, Losses Balloon

A closer look at B9 Beverages’ financial performance puts the delay into perspective. Regulatory filings reveal that the company’s revenue fell sharply by 22% in FY24, dropping to ₹638 crore from ₹824 crore the previous year. At the same time, net losses more than doubled, reaching ₹749 crore from ₹445 crore, a clear sign of mounting cost and margin pressures at the company.

Funding Initiatives to Address Liquidity

In response to these challenges, B9 Beverages, along with its holding company Day1 Advisors Pvt. Ltd., is in the process of securing a ₹800 crore funding round. Of this, ₹500 crore is expected to be raised through structured debt by Day1 Advisors, aimed at buying out stakes from existing B9 investors. The remaining ₹300 crore is intended to flow directly into B9 Beverages to bolster working capital and support expansion efforts.

Day1 Advisors, incorporated in November 2020 and holding approximately an 8.12% stake in B9 Beverages as of September 30, 2023, has previously acquired stakes from investors like Peak XV Partners (formerly Sequoia Capital India) by raising structured debt from Axis Capital. The terms of these transactions involve pledging B9 Beverages equity as security against the borrowings. 

Outlook and Future Plans

Looking ahead, There are plans for a B9 Beverages IPO in 2026, having engaged investment banking organization Morgan Stanley for its pre-IPO process. The successful execution of the present day funding projects and stabilization of operations will be pivotal in setting the stage for a favourable public listing.

Conclusion

B9 Beverages' current financial challenges, marked by delayed interest payments and liquidity constraints, underscore the complexities faced by rapidly growing startups in managing cash flows and operational disruptions. However, the company's transparent communication, ongoing funding efforts, and strategic planning reflect a commitment to overcoming these hurdles and achieving long-term growth. Investors and stakeholders will be closely monitoring the company's progress in the coming months as it navigates this critical juncture.