Here are some of the reasons why an individual should invest in the boAt IPO.
- Using existing distributors and their relationships with local retailers, the company intends to expand into offline markets and Tier 2+ cities and towns in India. boAt will also increase sales volume on other marketplaces and channels, including the online shopping website Nykaa, the Tata CLiQ store, and Myntra.
- boAt is a direct-to-customer (D2C) company that ranks highly in the hearables and second in the wearables categories. Digital channels and marketplaces account for more than 85% of total sales for the company, and it maintains its position as the leading brand on these platforms.
- In order to improve its products, the company has established relationships with component suppliers such as Qualcomm (a parent company shareholder), Google, Dolby, and Bharat FIH.
- In the last three fiscal years, the company has remained profitable. The electronic goods that the company resells continue to be the most expensive component of its costs.
- In fiscal year 21, the company generated Rs. 1.3 billion in revenue while investing only Rs. 1.7 million in plant, property, and equipment. To keep capital expenditure to a minimum, the company leases offices and warehouses rather than purchasing them.