boAt, the popular Indian brand known for its stylish audio products and wearables, is gearing up for its second attempt at an Initial Public Offering (IPO). After a
boAt, the popular Indian brand known for its stylish audio products and wearables, is gearing up for its second attempt at an Initial Public Offering (IPO). After a delay in 2022, the company is once again targeting a $300-$500 million IPO, with an eye on a valuation of over $1.5 billion. Let’s take a closer look at what this means for the brand, its future, and its investors.
boAt first filed for an IPO back in 2022, but market conditions forced the company to hit pause on its plans. At that time, the company raised $60 million in private funding from investors like Warburg Pincus and Malabar Investments, valuing boAt at $1.2 billion.
Now, in 2024, boAt is ready to try again. With fresh investment bankers—ICICI Securities, Goldman Sachs, and Nomura—on board, the company is aiming to raise anywhere between $300 million to $500 million in this upcoming IPO. ICICI Securities is leading the charge, and sources suggest boAt may be looking for a valuation of over $1.5 billion once the IPO is complete.
boAt’s recent financial results reveal a mixed picture. In FY 2023-24, the company reported a 5% drop in revenue, falling from INR 3,376.8 crore in the previous year to INR 3,285 crore. However, despite the decline in revenue, there’s some good news: boAt halved its losses, bringing them down to INR 70.8 crore.
Perhaps most importantly, the company reported positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the fiscal year, showing that its operational health is improving despite revenue challenges. The Diwali season sales boost helped lift the company’s fortunes after several quieter months, providing a glimmer of hope for its financial future.
Even though boAt faced some financial setbacks in 2024, it is still pushing forward with its growth strategy. One of the most exciting parts of this strategy is boAt’s plans to expand internationally. Co-founder Aman Gupta shared at the ET Soonicorns Summit in September that the company has its sights set on the UAE market, aiming to grow its brand outside of India.
boAt isn’t just about audio products anymore—it’s venturing into the wearables space, looking to diversify its portfolio. The company is working on reworking its IPO strategy to better reflect its evolving business model, which now includes wearables and other tech-driven innovations, not just headphones and earphones.
The timing of boAt’s IPO is critical. The company will be launching its public offering in a market that has shown both opportunities and challenges. On one hand, there’s a sense of cautious optimism in the Indian tech and consumer goods market, with companies like Swiggy and FirstCry having recently gone public. Swiggy’s IPO was better than expected, but many companies, including boAt, are adopting a more conservative approach to pricing their IPOs to avoid overestimating market interest.
For boAt, much of its IPO success will depend on timing and how well the company can adjust its valuation and narrative to fit the current market climate. The recent uptick in sales during the festive season might give boAt the momentum it needs to attract investors.
As boAt moves closer to filing its final IPO documents, it’s clear that investor confidence will be a key factor in the success of the offering. The company will need to tell a compelling growth story, showing that it has a clear vision for the future despite some of the financial hurdles it’s faced in recent years.
With ICICI Securities at the helm of the IPO process, boAt has partnered with some of the most trusted names in investment banking. This could be a sign that the company is serious about its public debut and is looking to make the most of the current market conditions.
Looking ahead, boAt’s success will depend on a few key factors:
boAt’s upcoming IPO is a significant moment for the company. While its revenue dip in FY24 is a concern, its ability to reduce losses, achieve positive EBITDA, and expand into new markets are promising signs for its future. With the help of top bankers like ICICI Securities, Goldman Sachs, and Nomura, boAt is set to make its public debut in 2024, possibly positioning itself as one of India’s leading tech companies.
For investors, boAt’s IPO presents an exciting opportunity to buy into a brand that has already established itself as a household name in India. Whether or not the company can maintain its momentum and grow internationally will be crucial to its success in the long run.
