Deep Dive October 12, 2025

"Growth at All Costs?" Staff Petition for CEO's Removal at Bira 91 Amid Unpaid Salaries

The internal turmoil at the popular craft beer brand has escalated into a public crisis, raising tough questions about founder accountability and financial management in India's startup ecosystem.

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Bira 91, the poster child for India's craft beer revolution, is facing its most severe crisis to date, not from competitors, but from within. A group of current and former employees has launched a formal petition demanding the removal of CEO and founder Ankur Jain, citing months of unpaid salaries and a severe lack of transparency from management. The revolt has sent shockwaves through the consumer startup sector, peeling back the glossy veneer of rapid growth to expose potential governance failures.

From Market Darling to Internal Disarray

Launched in 2015, Bira 91 captured the imagination of a new generation of Indian consumers, rapidly becoming a market leader and a venture capital darling, raising hundreds of millions of dollars over the years. However, the petition alleges that this aggressive, cash-burning expansion came at a direct cost to its employees. The core issue cited is a severe and prolonged cash flow crunch, where salaries were allegedly delayed for months while marketing and other expenses continued. This has created a situation of immense financial and mental distress for the staff, forcing them to take the drastic step of publicly challenging the founder's leadership.

"We built this brand with our sweat and passion. To be denied our basic salaries while the company projects an image of success is a profound betrayal of trust." - Excerpt from the employee petition.

A Symptom of a Larger Problem?

The Bira 91 crisis serves as a stark and painful reminder of the "growth at all costs" mentality that can pervade the startup world. It raises critical questions for the entire ecosystem:

  • Founder Accountability & Board Oversight: While founders are celebrated for their vision, where does the ultimate responsibility lie when a company fails to meet its most basic legal and ethical obligation to pay its staff? What is the role of the board and key investors in enforcing fiscal discipline?
  • The "Funding Winter" Effect: Is this crisis an isolated incident, or a symptom of the broader "funding winter"? As venture capital becomes harder to secure, other startups may be facing similar cash flow pressures, forcing them into difficult ethical corners.
  • Legal Recourse for Employees: Under Indian law, non-payment of salary is a serious breach of contract. This case highlights the need for employees to be aware of their rights and the legal channels available to them, including approaching the Labour Commissioner's office.

The outcome of this situation at Bira 91 will be a litmus test. It will be closely watched by employees, founders, and investors alike. It could set a powerful precedent for employee rights and force a much-needed conversation about sustainable growth and corporate governance in an ecosystem that has, for too long, celebrated valuation over viability. It is a sobering lesson that a strong brand is built not just on great products, but on a foundation of integrity and respect for the people who bring it to life.

#CorporateGovernance #Startups #Bira91 #EmployeeRights

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