Bira's backers discuss fund infusion tied to CEO's exit

Some large institutional stakeholders in B9 Beverages, maker of Bira 91 beer, have started discussions on the removal of founder and chief executive officer (CEO) Ankur Jain citing his inability to run the financially troubled company, four people aware of the development said.

- Suneera Tandon & Priyamvada C.

During a virtual call on 9 September, investors and lenders including Peak XV (formerly Sequoia India), Sofina, Sixth Sense Ventures, Anicut Capital and Japan's Kirin Holdings discussed the state of the business, with most shareholders agreeing to infuse fresh funds into the company on the condition that Jain steps down.

Two of the four people cited above attended the 9 September meeting. A financial settlement with Jain in a mix of equity and cash has also been discussed, these two people confirmed. All four spoke on the condition of anonymity.

B9 is facing shrinking revenues, mounting losses, tax troubles and pending vendor dues. Some 250 employees have petitioned B9's board and investors citing delayed salaries and governance concerns, The Economic Times reported last Thursday.

Jain denied any such development or a formal offer before him. "Neither any offer to bring in capital has been presented to me, the company or its board by any investor, lender or stakeholder on the condition that I step down, nor has any "financial settlement" been offered to me or any of the promoters," he said in an email.

But the four people said that discussions that Jain leave the company are indeed on. "Each shareholder spoke on what their position is. Most said they support the business, but if Ankur (Jain) steps down, they are ready to put more money," said one person directly involved with the developments at the company.