Boat is one of those Indian companies that has come a long way. The company has witnessed tremendous growth in only a few years since its start. All thanks to the brand’s business strategies, handwork, and passion. Currently, the boat share price is at a skyrocketing level of Rs 1500 per share. But how did the boat achieve this level of success?
Boat’s story began when founders Aman Gupta and Sameer Gupta observed a gap in the audio sector. They found that good-quality audio products were expensive while inexpensive ones were not of good quality.
The business began by launching Apple phone chargers since the original chargers were quite expensive and breakable. Their chargers performed quite well and were inexpensive. Gradually, the brand entered the audio market by introducing exclusive headphones and earphones.
Product, Pricing, And Marketing Strategies
Boat crafted the product strategies based on Indian customers’ preferences for booming bass. It named its first earbuds as BassHeads.
BoaT believed in observing the user’s needs and developing products. Boat has established itself as a lifestyle brand in place of a consumer electronics brand. The company implements inexpensive pricing on its products, especially chargers and earphones. The electronic products of BoAT were not as expensive as those of Apple or as cheap as those of Chinese products.
They decided to forego traditional marketing methods. Marking its presence through multiple marketing channels like Amazon, Myntra, Flipkart, and many more. This increased the company’s online presence and customer base.
Boat’s Acquisitions
- A Singapore-based IoT product development firm, KaHa Pte Ltd, was acquired by BoAT’s parent company in 2022.
- BoAT acquired a Delhi-based electronics brand, Tagg Digital, that sold speakers, smartwatches, and earphones in 2021.
- Signed a 50:50 joint venture with Dixon, the electronics manufacturing giant, to commence BoAT’s manufacturing activities at Dixon’s plant, in Noida.
Financial Growth and Revenue
The consumer electronics firm, BoAT, had registered tremendous growth in two consecutive years, FY 2021, and FY 2022.
According to BoAT’s consolidated financial statements, BoAT’s revenue from operations increased twice to Rs 2,873 crore during March 2023 in comparison to Rs 1,314 crore in FY 2021.BoAT is leading the market segment of true wireless stereo (TWS) with a market share of 46%.
EBITDA reported by BoAT in 2022 was Rs 1,431 million which dipped to Rs 549 in 2023. This was because of a higher cash burn during the year. The company’s increased cost is attributed to logistics, legal fees, and business development.
In addition, the company devoted Rs 140 crore to service warranty claims that resulted in higher costs. Despite the cost incurred, Imagine Marketing Limited has reported a revenue of INR 34,03.2 crores in the year 2023 which is its highest until now.
BoAT has reported an 82% growth in cash outflow from its operations during FY 2023.BoAT reported a 75% growth in sales of smartwatches and wearables in FY 2023 while a 3% growth in sales of audio and related electronic accessories.
Awards and Recognitions
- Awarded the top brand for wireless and ear wear brand in India in 2021.
- Presented as the 5th largest wearable brand in the world in 2020.
- BoAT was the wearable partner of IPL teams, RCB and GT in IPL 2023. It was the official audio partner for KKR in IPL 2023.
Boat IPO
BoAT has filed a draft prospectus with SEBI to launch its first IPO or initial public offer worth Rs 2000 crore in 2022. The company seeks to raise Rs 900 crore through the issue of shares while existing shareholders have offered shares of Rs 1000 crores for sale.
Currently, boat share price is around Rs 1500. Investing in unlisted boat shares can give a significant return in 2024-25. This is attributed to the company’s performance for 10 years and scope of growth in the competitive 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. Until now, BoaAt is an unlisted share in India which will be coming soon with its IPO.
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