Bira 91 founder Ankur Jain has stepped down from the company’s board and executive positions with immediate effect following a settlement with the beer maker’s lenders.

Jain announced his departure in a LinkedIn post on 21 July, saying his family would also exit the business as part of the agreement.

Both sides have agreed to withdraw claims and litigation against each other, while personal guarantees provided by Jain for corporate loans will be released.

The settlement comes after months of negotiations involving nearly 30 stakeholders, including lenders, shareholders and other parties, according to Jain.

Jain said Bira 91 now requires fresh capital, a clearer balance sheet and a new management team to lead its next phase. He added that he would support the transition following his departure.

The founder also addressed the financial difficulties faced by the company over the past 18 months, attributing them to Bira 91’s inability to raise additional capital despite attempts to secure funding.

“Not because the ambition failed, and not because the team stopped fighting — but because we could not find capital, at any cost, under any terms,” Jain wrote.

The development follows a period of financial and operational strain at Bira 91. Last year, the company faced disruptions after its parent entity changed from B9 Beverages Private Limited to B9 Beverages, requiring it to re-register licences across states and contributing to an INR 80 crore product write-off, according to an Inc42 report.

The report also cited Bira 91’s FY24 financials, which showed a 22% decline in revenue to INR 638 crore, while losses rose 68% to INR 748 crore.

In his latest post, he apologised to employees who had not received payments owed to them on time, taking responsibility for the company’s failure to meet those commitments. “I am sorry to every employee who didn't get what they were owed, when they were owed it. That is on me, and I will carry it,” he said.

Jain also acknowledged that delays in reaching the lender settlement had affected employees awaiting dues, vendors awaiting payments, lenders seeking resolutions and shareholders looking for clarity.

The development marks the end of Jain’s tenure at the company he founded and led for more than a decade. In his letter, Jain reflected on Bira 91’s expansion as well as the financial challenges it faced, including the impact of the Covid-19 pandemic on its on-trade business and multiple instances when the company came close to running out of capital.

Before founding Bira 91, Jain worked as a consultant at Reliance Industries and co-founded healthcare revenue cycle management company ReliantMD.

Following the settlement, Bira 91 will enter its next phase without Jain or his family in executive or board positions.