The popular Indian craft beer wrestles with growing employee discontent and falling sales
Indian craft beer maker Bira 91, owned by B9 Beverages Pvt Ltd, is facing growing unrest from current and former employees over unpaid salaries, withheld reimbursements, and abrupt job changes following months of internal restructuring and layoffs.
The disruption adds to the challenges confronting the once high-flying startup, which has in recent months struggled with supply chain issues, mounting losses, and an inventory write-off tied to a recent, costly relabelling exercise.
The company, backed by investors that include Sofina, Kirin Holdings, MUFG Bank, and Peak XV Partners, has raised about US$457 million since its founding in 2015. But despite the capital inflow, Bira 91’s revenue fell 22% to INR6.38 billion (US$74.88 million) in the fiscal year ended March 2024, while net losses widened to INR7.48 billion.
The performance downturn was partly attributed to inventory losses linked to its 2023 legal name change, which triggered a massive relabelling process across all its markets.
Indian craft beer maker Bira 91, owned by B9 Beverages Pvt Ltd, is facing growing unrest from current and former employees over unpaid salaries, withheld reimbursements, and abrupt job changes following months of internal restructuring and layoffs, according to local media reports.
The disruption adds to the challenges confronting the once high-flying startup, which has in recent months struggled with supply chain issues, mounting losses, and an inventory write-off tied to a recent, costly relabelling exercise.
The company, backed by investors that include Sofina, Kirin Holdings, MUFG Bank, and Peak XV Partners, has raised about US$457 million since its founding in 2015. But despite the capital inflow, Bira 91’s revenue fell 22% to INR6.38 billion (US$74.88 million) in the fiscal year ended March 2024, while net losses widened to INR7.48 billion.
The performance downturn was partly attributed to inventory losses linked to its 2023 legal name change, which triggered a massive relabelling process across all its markets.
Recently, staff tensions within the company have escalated after reimbursements for travel and other expenses were reportedly halted late last year, with several staff reassigned to new roles or locations without sufficient notice or training, according to reports. Some employees have alleged that those who resisted role changes — particularly the transfer of marketing staff to sales functions in different states — were asked to resign.
The operational difficulties coincided with a broader company liquidity crunch, leading to delayed payments to vendors and disrupted brewery operations, according to reports. Moreover, a multi-year sponsorship of cricket events, including one with the International Cricket Council, compounded concerns about capital allocation, as some insiders questioned the sustainability of the company’s aggressive marketing spend.
Some industry analysts suspect that Bira 91’s rapid expansion strategy is becoming a cautionary example of growth pursued at the expense of operational stability. As India’s startup ecosystem grapples with a funding slowdown, Bira 91’s internal turmoil underscores the risks of scaling too quickly without first aligning execution, cash flow management, and employee engagement.
