Anicut Capital Takes Control of Bira 91 Founder Ankur Jain's Stake, Leads Company's Revival

In a major development for India's startup ecosystem, venture debt firm Anicut Capital has assumed control of Ankur Jain's and his family's 17%+ stake in B9 Beverages, the parent company of the popular craft beer brand Bira 91. The move marks a significant shift in the ownership and governance of the company as lenders take charge of restructuring the financially stressed brewer.

Founder Exit Paves Way for Lender Control

The stake transfer comes just days after Bira 91 founder Ankur Jain stepped down from the company's board, relinquishing executive control and ownership following a settlement with lenders and institutional investors. The agreement concluded months of negotiations involving nearly 30 stakeholders, including lenders, shareholders, employees and vendors, allowing all parties to withdraw legal claims against one another.

As part of the restructuring, Anicut Capital is expected to nominate three directors to the B9 Beverages board, including its co-founder IAS Balamurugan, and take the lead in executing the company's turnaround strategy.

How Did Anicut Gain Control?

Between 2017 and 2022, Anicut Capital had extended multiple debt facilities to B9 Beverages. These loans were secured against the promoter family's shareholding in the company. With the recent settlement, the lender has effectively taken control of the pledged shares, giving it a central role in the company's future.

The settlement also releases Ankur Jain from the personal guarantees he had provided against the company's borrowings, bringing an end to his formal association with the business he founded in 2015.

Bira 91's Financial Crisis

Once regarded as one of India's biggest consumer startup success stories, Bira 91 has struggled over the past two years with mounting operational and financial challenges.

The company's troubles began after converting into a public company, which triggered fresh excise approval requirements across several states, disrupting production and sales. This was followed by inventory write-offs, vendor payment delays and an inability to raise fresh capital, pushing the company into a severe liquidity crunch.

The crisis eventually led to:

• Suspension of production at multiple facilities
• Debt and liabilities reportedly approaching ₹1,000 crore
• Delayed salary payments to employees
• Outstanding dues to vendors and statutory authorities
• Significant governance concerns raised by lenders and investors

Existing Investors to Back Revival

The restructuring is expected to be accompanied by a fresh recapitalisation from existing investors and lenders. The immediate priorities include:

• Clearing employee salary dues
• Paying statutory liabilities
• Settling vendor payments
• Restarting manufacturing operations
• Stabilising the company's balance sheet

B9 Beverages' investor base includes Peak XV Partners, Sofina, and Kirin Holdings, while Anicut Capital and Hero Corporate Services' family office have been among its key lenders.

What This Means

Anicut Capital's takeover of the promoter stake represents one of the most significant lender-led restructurings in India's startup ecosystem. Rather than forcing the company into liquidation, lenders have chosen to preserve the business by assuming control and attempting a revival.

For startup founders, the episode also highlights an important lesson about venture debt. While debt financing allows founders to raise capital without immediate dilution, loans secured against promoter shareholdings can ultimately lead to a loss of ownership if repayment obligations cannot be met.

Whether Bira 91 can regain its position in India's rapidly growing premium beer market will now depend on the success of the restructuring, fresh capital infusion, and the new management's ability to restore operations and rebuild stakeholder confidence.

Source: https://inc42.com/buzz/anicut-capital-takes-control-of-bira-91-founder-ankur-jains-stake/