New Delhi, Oct. 15 -- Some large institutional stakeholders in homegrown beer maker B9 Beverages, the owner of the Bira 91 brand, 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. During a virtual call on 9 September, investors and lenders including Peak XV, 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 was also discussed, the two people confirmed. All four requested anonymity. B9 is facing shrinking revenues, mounting losses, tax troubles and pending vendor dues. Some 250 employees have petitioned the B9 board and investors over delayed salaries and governance concerns, The Economic Times reported. 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 persons independently told Mint 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," one of the four people said. The beer maker was founded by Jain in 2015 and became widely popular owing to its cool packaging and made-in-India narrative. The business soon attracted top venture capital firms as also angel investors such as Kunal Bahl and Rohit Bansal of Snapdeal, Deepinder Goyal of Zomato, Ashish Dhawan, formerly of ChrysCapital. It's not clear if they still own shares in the company. In June 2024, Bira raised $25 million from Kirin, according to an Entrackr report. Over the last two fiscal years, B9's business has suffered, prompting investors to take a hard look. "If you look at where things stand today, employees haven't been paid in six months, statutory liabilities have built up. His leadership is clearly not working. He's not able to bring money into the company. In fact, other people are ready to bring in money, and the condition is that he has to go," said the first person quoted earlier. Email queries sent to Sixth Sense, Sofina, and Kirin Holdings remained unanswered, while Peak XV and Anicut declined to comment on Mint's queries. The next steps cannot be figured out unless the founder steps down, the second person said, while the third person said "management improvement" is needed at B9. Jain said he was staying at the company. "There is no question of any change in the leadership or me stepping down. I along with the management team are standing firm and are doubling down on our efforts to restore the company," he said. On discussions among investors, he said: "All possibilities have been part of discussions with various stakeholders, including restructuring debt, ownership of equity, buyout of investors and haircuts for lenders/conversion of debt into equity. Given the criticality of the situation, all stakeholders have approached these discussions with an open mind and at least shareholders and promoters recognize that compromises will need to be made by key shareholders including promoters to bring in capital to the company." B9 is, in fact, in talks to conclude a "substantial capital raise," Jain said without revealing names of potential investors. "We have received and signed certain term sheets. Our plan includes infusion of some capital in this quarter to bring immediate relief and repair business operations, and it includes the conclusion of our largest ever fundraise by next quarter. This fundraise will include a massive cleanup of the company's balance sheet, significant reduction in debt and over dues and give the company runway till it becomes cash flow positive," he said....