Boat, a direct-to-consumer (D2C) audio and wearables business, has formally withdrawn its ambitions to go public after closing a $60 million (about Rs 500 crore) funding round through convertible preferred equity notes from Warburg Pincus and Malabar Investments. According to persons familiar with the details of the agreement, Boat has set a minimum valuation cap of around $1.2 billion as part of this fundraising.
BoAt’s parent business, Imagine Marketing Limited, is raising Rs 500 crore from its current stakeholder, a Warburg Pincus affiliate, a top-tier global private equity fund, as well as from new investor Malabar Investments.
According to the company, the investment will allow it to expand its operations both inside and outside of India, further improve its R&D, and advance its plans to achieve leadership in the wristwatch category.
Following the cancellation of their IPO plans by companies like Mobikwik, PharmEasy, and Droom amid rising market volatility, boAt has delayed the launch of its first public offering (IPO). BoAt also disclosed that it raised Rs 500 crore (about $60 million) from its current investor Warburg Pincus and new investor Malabar Investments through a private placement through preference shares. The use of this method of fund-raising is becoming more and more popular among late-stage firms that seek to prevent a drop in valuation in a down market.
BoAt, an Indian consumer electronics company founded in 2015, sells earphones, stereo headphones, portable chargers, and premium tough cables. Co-founders Sameer Ashok Mehta and Aman Gupta formed Imagine Marketing Services Private Limited in November 2013, which operates as BoAt.
BoAt creates and sells a variety of consumer gadgets with an emphasis on music, such as wireless earbuds, wired headphones, wireless speakers, home audio gear, smart watches, and a selection of cell phone add-ons.
BoAt uses a combination of influencer marketing, brand partnerships with sports teams, and public events to promote its products.
BoAt refers to its brand ambassadors as “BoAtheads.” Indian musicians Neha Kakkar and rapper Naved Shaikh (also known as Naezy), as well as athletes like cricketers Hardik Pandya and Shreyas Iyer, are just a few of the brand’s influencers.
The business has branded partnerships with sporting teams including the Mumbai Indians and Chennai Super Kings of cricket. Additionally, BoAt has co-branded its audio products with significant occasions like the Lakmé Fashion Week as well as music festivals like Sunburn.
The company had already submitted a draught prospectus to the market regulator Securities Exchange Board of India (Sebi) for a Rs 2,000 crore initial public offering (IPO).
The company had earlier this year submitted its draught papers to the Securities Exchange Board of India (Sebi) for an initial public offering of Rs 2,000 crore (IPO). The business, however, has formally given up on its intention to list. An individual said that the business proactively withdrew its DRHP because it was authorised to raise Rs 180 crore before the IPO but ended up raising more than Rs 500 crore of shares. This information was provided to an online media site for entrepreneurs, startups, and technology enthusiasts. The company will likely reconsider its IPO aspirations in the next 12 to 18 months.
In India, the wrist wearables market has enormous potential. IDC believes that it was the fastest-growing category in the wearables segment for the months of April through June, with shipping increasing by nearly four times to 6.4 million devices from 1.6 million units in the same quarter last year. In the most recent quarter, Noise and Fire-Boltt were among the top two firms in the wristwatch industry, while boAt fell to third place, making India the second-largest smartwatch market in the world, behind the US.
The business also stated that it is advancing its efforts to diversify its manufacturing footprint through alliances with other top Indian companies that offer electronics manufacturing services, including Dixon, with whom it formed a joint venture in January of this year.
A sizeable amount of boAt’s products are now made in India, where roughly a million units are currently produced each month. The business is also making preparations to expand the boAt brand internationally.
