The boAt company valuation is expecting a $1.5-2 billion valuation this year.
The boAt company valuation is expecting a $1.5-2 billion valuation this year.
Imagine Marketing Limited, parent company of boAt, one of the country's largest direct-to-consumer, audio-focused electronics firms, is set to submit a draft red herring prospectus for a Rs 2,000-crore initial public offering with SEBI (Securities Exchange Board of India).
In the IPO, Warburg Pincus, the single largest shareholder in boAt with around 36% ownership, will sell shares worth Rs 700-800 crore. The cofounders Aman Gupta and Sameer Mehta, who own around 56 percent of the firm, are anticipated to dilute a minor share of their stake.
When it raised Rs 50 crore from Qualcomm Ventures in April last year, boAt was valued at around Rs 2,200 crores. This fiscal, it is aiming for a valuation of 5-6 times its income.
Imagine Marketing Limited, parent company of boAt, one of the country's largest direct-to-consumer, audio-focused electronics firms, is set to submit a draft red herring prospectus for a Rs 2,000-crore initial public offering with SEBI (Securities Exchange Board of India).
boAt was formed in 2016 and has quickly established itself as one of the standout homegrown D2C brands that have challenged market leaders in the earphones and wearables industry.
On the basis of Rs 1,500 crore in income, it recorded a net profit of Rs 78 crore for the year ended March 31, 2021.
The firm is establishing a venture fund to invest in early-stage D2C companies as the sector gains exposure and more customers begin purchasing via ecommerce.
Wearables are a major component of the company's strategy, which is why it has been expanding under the brand. boAt also said it is one of the top two businesses in the industry, with a 20% market share, after starting up operations in less than one year.
According to the firm, the wearables market in India is anticipated to be more than ten times its current size of $200 million by 2025.
The following are some of the goals that boAt hopes to achieve with the proceeds of this IPO:
Here are some of the reasons why an individual should invest in the boAt IPO.
boAt intends to expand on its market leadership positions in fast-growing categories in which it already excels.
The company is looking into ways to expand its presence in product categories outside of its core business, either through existing brands or through acquisitions of new brands.
To mitigate the risk of production delays and cost overruns, the company has broadened its supplier and contract manufacturer network and invested in its "Make in India" initiative.
boAt invests in its R&D capabilities and relationships with technology providers in order to develop new products.
In the near future, the company plans to expand into international markets, focusing primarily on audio and wearables.
boAt is one of India's largest digital-first brands, with market leadership.
It is a consumer brand with a strong market position and a clear value proposition.
Distinctive marketing capabilities can effectively generate higher levels of consumer engagement and sales.
With real-time feedback from sales channels and customers, the company can develop products on time and stock the most popular ones.
boAt Labs' in-house design team has worked on several projects aimed at improving the company's products. According to boAt, this has aided in the development of a product line tailored to the Indian market.
To manufacture its products, the company must rely on a number of third-party suppliers.
Similarly, the company must rely on its relationships with online and offline retailers.
Pricing pressures from marketplaces and consumers can have an impact on gross margins.
Entering international markets and new geographies can be a significant source of growth for businesses, depending on the industry.
Revenue will be driven by increased demand for smart wearables.
Customers lack brand loyalty when it comes to boAt. New brands offering quality products at comparable or lower prices may eat into this company's market share.
The brand's visibility is heavily influenced by algorithms on online marketplaces and the company's ability to secure promotions with these venues. If the company loses its presence in these venues or has major issues with them, its revenue will suffer.
The majority of this company's products are manufactured in other countries, with recent shifts to India and Vietnam. Supply-chain issues, currency fluctuations, and changes in import duties continue to be risks for the company.
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