Indian craft beer maker Bira 91 to buy Beer Cafe in all-stock deal

Sequoia Capital-backed Bira 91 said on Wednesday it will buy beverage chain operator The Beer Cafe for an undisclosed price, giving the Indian craft beer maker access to more restaurants and pubs as dining out becomes a preferred option again.

Started in 2015, Bira is one of India's most popular craft beer makers and is backed by Japan's Kirin Holdings and Belgium's Sofina. It competes with international brands such as Carlsberg as well as Heineken-owned and United Breweries.

The deal comes during the festival season in the South Asian country, with more people stepping out for socialising and dining after being forced to stay largely indoors for nearly two years of the pandemic.

Beer Cafe's chief executive officer, Rahul Singh, will lead the brand's operations, the companies said in a statement.

"We will be making some new private-label beers at Bira breweries," Singh told Reuters, adding that the deal with Bira was an all-stock deal.

Singh declined to comment further on financials.

Beer Cafe, which sells 50 brands across 33 outlets in 15 cities, will continue to serve beer from different global brands, the statement added.

Kirin is in talks with Bira to triple its investment in the beer marker, sources told Reuters last month. The company is set to pump in the additional funds at an equity valuation of $450 million, the sources said.