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boAt, known for its audio products and wearables, is revving its engine for an Initial Public Offering (IPO). Its parent company, Imagine Marketing India, is in talks with three investors. Even though BoAt’s co-founder and CEO, Sameer Mehta, stated that there is “no pressing need for the capital, and there are some inbound interests from a large global fund, sovereign fund, and one strategic investor.”
The co-founder further stated that the company is focusing on improving its financial performance regarding its ratios, capital employed, and net profit. Imagine Marketing – BoAt's parent company – is now focused on strategic investments, operational improvements, and diversifying its product portfolio. This will help them drive the brand's continued growth and profitability ahead of their public listing.
How Is BoAt Performing Financially?
Sameer Mehta, the CEO and co-founder of Boat, said that the company has turned EBITDA positive in 2023-24 and expects to become net profitable again in the current fiscal year.
In FY23, the company incurred its first net loss and reported a deficit of Rs. 129.4 crores as compared to the net profit of Rs. 68.7 crores in FY22. This loss was majorly due to an investment made to scale local manufacturing.
As per the researcher IDC India, BoAt is the largest smart wearable brand in India. Here's the breakdown of its performance:
Smart wearables: BoAt is number one with 24% of the market, followed by Noise at 14%.
Wireless headphones: boAt dominates again with a whopping 34% share, with Boult Audio coming in second at 12%.
Smartwatches: While not quite leading the pack, boAt still holds a strong third place with 7.3% of the market. Fire-Boltt and Noise are the top two contenders in smartwatches, with 23.5% and 22.8% share, respectively.
BoAt’s Funding History
BoAt has raised significant funding over the years to fuel its rapid growth and expansion. In 2020, the company announced it had raised approximately $100 million from Warburg Pincus and Qualcomm Ventures. More recently, in 2022, BoAt secured an additional $61.6 million in funding from Warburg Pincus and a new investor, Malabar Investments. So far, the company has raised $177 million in total funding.
BoAt plans to use these funds to expand its global footprint and establish itself as a leader in audio and wearables. While BoAt earlier filed for an IPO worth INR 2,000 crore, it has now withdrawn those plans. They intend to reassess going public in the next 12-18 months, once it has scaled up its wearables business.
boAt's ability to attract significant investments from reputable firms underscores its strong performance, innovative products, and potential to become a global consumer electronics leader.
BoAt’s IPO Plans?
The public offering is a clear part of BoAt's long-term strategy. BoAt is looking at going public after reporting a profit for FY25. In the next 12-18 months, the company is planning to raise funds worth Rs. 2,000 crores through an IPO. The company had previously filed its draft red herring prospectus (DRHP) with SEBI in 2022.
However, those plans were put on hold as the company prioritized financial stability and felt no immediate pressure for an IPO. Aman Gupta said that BoAt was not in a rush for an IPO for at least the next couple of years and that the company had sufficient funding.
BoAt's strong funding history and investor confidence enabled the company to expand its product portfolio, strengthen its manufacturing capabilities, and solidify its position as a leading player in the Indian wearable and audio market.
How can you buy Boat shares?
Boat has been recording higher profits and revenues in each fiscal year since its start. With a high demand for easy-to-use transport electronics in the market, BoAT has a probability of high growth. Currently, boat shares are traded in unlisted markets.
With promising developments like investor talks and IPOs, this can be the right time to invest again through buying unlisted shares. Stockify is one such trusted broking firm that provides access to trending unlisted shares in the market with their financial reports. Giving you an alternative investment option with promising returns.
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