By Abhay Ray 
Introduction
BoAt, the country’s largest wearable brand, has reportedly received shareholders’ boAt is preparing to file a confidential Draft Red Herring Prospectus (DRHP) for its initial public offering (IPO) in the upcoming financial year 2025-26. The shareholders of boAt’s parent firm, Imagine Marketing, have given nod to a special resolution allowing the company to raise capital via IPO route, which will be combination of fresh equity shares and offer for sale by existing shareholders, as per the filings made with the Registrar of Companies (RoC). The company is reportedly aiming to raise ₹ 2,000 crore through the listing.
What is the BoAt IPO and Major Investors
The upcoming IPO marks the company’s second attempt at going public after it initially filed for a ₹ 2,000 crore IPO in 2022 but later withdrew due to unfavourable market conditions. Instead of proceeding with the listing at the time, boAt opted to secure $60 million in private funding. The electronics brand may target a valuation exceeding $1.5 billion, although final figures are yet to be determined. BoAt, founded in 2013 and launching its flagship brand in 2014, has grown into one of India’s leading wearable and audio device manufacturers. As of the second quarter of 2024, the company holds a 26.7 per cent share in the country’s wearable market. While the audio segment showed stability in the latter half of 2024, the brand witnessed an increasing shift towards online sales.
The company is backed by Major Investors, including Qualcomm Ventures, Innoven Capital, Warburg Pincus, and Fireside Ventures. With its strong market presence and investor backing, boAt’s IPO is expected to generate significant interest from both institutional and retail investors. The confidential filing of the DRHP will allow boAt to finalise its financials and valuation details before making the information public, a move that is increasingly being adopted by companies seeking flexibility in market timing and regulatory approvals. As boAt prepares for its public market debut, analysts will be closely watching its financial performance and growth strategy, especially in a highly competitive consumer electronics landscape.
BoAt – Financial Performance
As per latest report by the market research firm International Data Corporation (IDC), boAt is the leader in the overall wearable category in India, cornering a 27% market share, followed by Noise (Nexxbase) with a 12.2% share in 2024.
In terms of financial performance, the Warburg Pincus-backed firm has managed to reduce its net loss by 47% to ₹ 53.6 crore in the financial year 2023-24 (FY24) from ₹ 101 crore in the previous fiscal. The startup managed to turn EBITDA profitable in FY24, reporting an operating profit of ₹ 14.04 crore in FY24 as against an EBITDA loss of ₹ 50.21 crore in FY23. The revenue dropped 5% to ₹ 3,121.6 crore from ₹ 3,284-7 crore in the previous fiscal year.
What is the Company’s Plan
According to sources, Boat is planning to raise ₹ 2,000-2,500 crore from the IPO but the final number may be based on market conditions and the financial position of the company. Let us tell you that the company had appointed ICICI Securities, Goldman Sachs and Nomura as bankers for its IPO. The company can be listed in the stock market by the financial year 2026.This company has launched many electric equipment in the market, including smart watches and headphones. The company has a 26.7% market share till the September quarter of 2024. In FY24, the company’s revenue fell by 5% to ₹ 3285 crore. At the same time, the loss halved to ₹ 70.8 crore.
How to Use Boat IPO Funds to Expand Its Market Reach
Boat plans to utilize the funds raised through its Initial Public Offering (IPO) to drive growth, enhance its product offerings, and expand its market reach both domestically and internationally. A significant portion of the IPO proceeds will be dedicated to research and development (R&D). By investing in innovation, Boat aims to introduce cutting-edge features in its audio devices and wearables, such as AI-driven functionalities, enhanced battery life, and superior sound quality to stay ahead of market demands. Additionally, global market expansion is a key focus. The funds to increase its presence in international markets, particularly in regions like Southeast Asia, Europe, and the Middle East. This expansion will involve forming distribution partnerships, localized marketing strategies, and developing region-specific product offerings to cater to local preferences.
Boat also intends to invest in marketing and branding to boost its visibility. Digital advertising, influencer collaborations, and campaigns targeting younger tech-savvy consumers are likely to play a significant role in increasing brand awareness and customer engagement. To support growth, manufacturing capabilities will be enhanced, including scaling production capacity to meet rising demand. Additionally, Boat plans to improve its supply chain management and customer service infrastructure to ensure better delivery efficiency and after-sales support, and look into strategic acquisitions or partnerships that align with its expansion strategy. These efforts, combined with improved retail and e-commerce channels, will help Boat solidify its position as a global player in the consumer electronics market.
Conclusion
With the shareholder approval in place, boAt is now one step closer to becoming a publicly listed company. As it enters this new phase, the brand is poised to leverage the funds raised through its IPO to fuel its growth, enhance its product offerings, and solidify its position in the global market. This strategic move not only signals a new chapter for boAt but also sets the stage for exciting opportunities in the tech industry.
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