India's Bira 91 raises $70 mln in Kirin-led funding round
22/11/2022 10:53
BENGALURU, Nov 22 (Reuters) - Indian craft beer maker
Bira 91 has raised $70 million in a funding round led by
Japanese beer company Kirin Holdings Co Ltd 2503.T as it looks
to ramp up production amid strong demand for the alcoholic
beverage, the two companies said on Tuesday.
Bira competes with brands such as Carlsberg CARLb.CO and
Heineken-owned HEIN.AS United Breweries UBBW.NS in India's
estimated $5 billion beer market.
Craft beer sales are on the rise in India as younger,
affluent consumers in big cities choose brands and pubs that
make lighter brews and promise fresher ingredients.
Bira did not say what its valuation or Kirin's stake would
be after the funding round, but said it would use the funds to
build new breweries and expand existing facilities, increasing
its footprint, which spans 550 towns in 18 countries.
Kirin, which first invested $30 million in Bira for an under
10% stake last year, was set to pump in the additional funds for
an around 15% stake at an equity valuation of $450 million,
Reuters reported in September. urn:newsml:reuters.com:*:nL4N30Q0ZS
A Bira spokesperson declined to comment further, while Kirin
did not immediately respond to an email from Reuters seeking
additional comment.
The new funding comes after Bira reported an operating loss
of $4 million in the quarter to June 2022, although net sales
revenue was 132% higher at $20 million, according to an internal
investor presentation seen by Reuters.
For Kirin, the investment comes as Japan's major drinks
makers face a steady decline in revenue from alcohol sales as
the domestic population shrinks and younger people drink less
than in previous decades, forcing companies to expand overseas
or foray into new markets.
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Savio
D'Souza)
((Meenakshi.Maidas@thomsonreuters.com; Mob: +91 8921483410;))