boAt Onboards Three Bankers For $300-500 Mn IPO

Audio products and smartwatch maker boAt has reportedly finalised a host of bankers for a $300-500 Mn initial public offering (IPO) next year.

As per ET, citing sources close to the matter, the company has onboarded ICICI Securities, Goldman Sachs and Nomura as bankers for the IPO.

The report further said that boAt may target a valuation exceeding $1.5 Bn, though final figures could adjust closer to the IPO filing. 

boAt has declined to comment on the development.

It is pertinent to note that this is the startup’s second attempt at an IPO. In 2022, the company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an INR 2,000 Cr public issue. However, later it shelved the plans, with cofounder Aman Gupta last year saying that boAt was not in a rush to go for an IPO for the “next couple of years”

Instead of proceeding, boAt opted to raise $60 Mn in private capital through convertible preferred stock from existing investor Warburg Pincus and new investor Malabar Investments, at a valuation cap of around $1.2 Bn.

The report added that ICICI Securities would act as the lead banker for the issue, with plans to file for the next financial year. Altogether, the company has finalised four bankers.

The development comes at a time when boAt saw its consolidated operating revenue decline by over 7%, reaching INR 3,117.7 Cr in the financial year 2023-24 (FY24), down from INR 3,376.8 Cr in the previous fiscal year, with its wearables category experiencing a significant downturn. Sales in the wearables segment dropped nearly 40%, from INR 910.6 Cr in FY23 to INR 550.3 Cr in the year under review.

Meanwhile, boAt’s audio products segment, which accounts for a majority of its total sales, saw a mere 5% increase in revenue to INR 2,459.2 Cr during the year from INR 2,350.8 Cr in FY23.

However, despite the decline in its revenue, boAt managed to narrow its loss in FY24. The Aman Gupta-led startup’s net loss fell over 38% to INR 79.7 Cr during the year from INR 129.4 Cr in FY23.

Founded in 2015 by Gupta and Sameer Mehta, boAt operates in the larger audio and wearables markets and sells products such as headphones, smart watches and speakers. It is backed by the likes of Qualcomm Ventures, Ranveer Singh, Warburg Pincus, among others, and has raised about $177 Mn in funding till date.

boAt is one of the top audio device brands in India, competing with giants like JBL, Sony, Samsung, OnePlus, Noise, and several other emerging new-age startups.