Indian craft beer maker Bira 91 announced on Tuesday it had raised $70 million in a Series D funding round led by leading Japanese beer company Kirin Holdings. The firms were in talks for about two months for the deal. The investment from Kirin Holdings comes at a time when the demand for beer is witnessing a massive surge in India, while there is growing pressure in Japan as the domestic population shrinks and younger people drink less than in previous decades.

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Kirin had first invested $30 million in Bira for an under 10 percent stake last year. The funds would be deployed to expand production capacity by commissioning new breweries and expanding existing facilities, Bira said. The capital would be utilised to increase the distribution footprint in India and abroad, and bolster product development and innovation capabilities.

Hiromasa Honda of Kirin Holdings Singapore believes Bira 91 has the potential to premiumise Indian beer through innovation. He said that the company had the potential to break out internationally as a global brand.

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The company is doubling down on its investment in Bira even as the Japanese yen has fallen to multi-year lows, which makes foreign investments costlier.

Kirin Holdings has worked with the management team of Bira 91 across some of the key aspects of business, especially in manufacturing capability and sustainability. "The partnership with Bira 91 could be a great model for accelerated success in emerging markets by driving localised manufacturing and innovation combined with a focus on sustainability," Honda said.

Bira 91 recently announced its goal to become the country’s first carbon-neutral beer company and has formed the B9-Kirin Center for Sustainable Growth based out of its New Delhi headquarters, where technical and strategy experts from Kirin are helping them with its Net Zero goal.

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As one of the youngest players in the market, Bira 91 has secured a double-digit share in several key markets and emerged as the fourth-largest beer company in India, as per the company.

Launched in 2015, the company offers 10 diverse flavours, along with many seasonal beers released in its tap rooms. The company recently announced an acquisition of the largest beer-pub chain in the country – The Beer Café. The company has a presence across 550 towns in 18 countries across the globe.

First Published:Nov 22, 2022 1:05 PM IST