Bira 91 founder Ankur Jain exits after settlement with lenders; says company needs fresh capital

Ankur Jain, the founder of Bira 91 parent B9 Beverages, has stepped down from the board and his executive role after signing a settlement with lenders and investors, clearing the way for the company's restructuring and a fresh capital raise.

A letter by Jain, accessed by Entrackr, reveals that the settlement includes the withdrawal of all litigation, release of personal guarantees extended by the founder, and the promoter family's exit from the company's board and executive positions.

According to Jain, the settlement took much longer than expected as it involved nearly 30 stakeholders with "genuinely different, often competing interests."

"We have now reached that settlement. As part of it, my family and I will be stepping away from the board, and from our executive positions, with immediate effect," Jain wrote.

He added that all parties have agreed to withdraw claims and legal proceedings against each other, bringing the dispute to a close. Jain also confirmed that the personal guarantees he had provided for corporate loans over the years would be released as part of the agreement.

"It is, in every sense, a clean and full close of this chapter," he said.

Jain acknowledged that the prolonged negotiations had affected employees awaiting salaries, vendors awaiting payments, lenders seeking resolution, and shareholders looking for clarity. He described reaching an agreement among nearly 30 stakeholders as "close to a miracle."

The founder said Bira 91 now requires fresh capital, a clean balance sheet, and a new management team to lead the business into its next phase. He added that he would support a smooth transition and continue to back the brand from the sidelines.

B9 Beverages has faced severe financial stress over the past two years. The company reported a net loss of Rs 748.8 crore on operating revenue of Rs 638.5 crore in FY24. Amid cash flow constraints, delayed salary payments, and disputes with creditors, investors had sought changes in the company's management.

The company has not disclosed its financial statements for FY25 and FY26.

The settlement is expected to pave the way for an out of court restructuring, with existing investors likely to infuse fresh capital to revive the business after months of financial distress.