Consumer Tech Startup boAt Plans An IPO At $1.4 Bn Valuation

SUMMARY

boAt is aiming to raise up to INR 3,500 Cr (about $500 Mn) at a valuation of $1.4 Bn and might list itself between March and June next year

The IPO valuation is a 5x jump from its 2,000 Cr valuation, with which the startup raised $100 Mn

It has raised over $116 Mn to date; its most recent funding was in April this year of $6.7 Mn from Qualcomm Ventures

Amid the IPO rush in the Indian startup ecosystem, consumer wearable electronics startup boAt is now reportedly planning an IPO to raise up to INR 3,500 Cr early next year. With the listing, the startup plans on raising funds and offering exits to some of its investors.

A report suggests that it is looking at a $1.4 Bn (10,000 Cr) valuation for the initial public offering (IPO) and might list itself between March and June in 2022. Although boAt is the fifth largest wearable brand globally, its IPO valuation is a 5x jump from its 2,000 Cr valuation, with which it raised $100 Mn from Warburg Pincus — a US-based private equity firm.

Launched in 2016 by Aman Gupta and Sameer Mehta, boAt is an audio-tech startup that manufactures products earphones, headphones, speakers, soundbars, travel chargers, premium rugged cables, and more.

Until April this year, the startup has raised over $116 Mn across six funding rounds. Some of its prominent investors include Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Fireside Ventures, among others. Reports insinuate that some of these investors might take an exit with the startup entering the public market.

Its most recent funding was earlier this year, wherein the startup raised Rs 50 Cr ($6.7 Mn) from Qualcomm Ventures — the VC arm of the US-based semiconductor chip producer Qualcomm.

Although an Indian brand, boAt relies on China for manufacturing its products, considering there aren’t many local manufacturers units in the country for Indian electronics. However, boAt is working towards building its manufacturing facility in India along with a dedicated R&D facility.

In FY 2020, boAt clocked in annual revenue of Rs 704 Cr and saw a 6x surge in profits compared to Rs 8 Cr in 2019 to Rs 48 Cr in 2020. In addition, the startup also claimed to achieve a gross sale worth Rs 500 Cr in 2021.

Among the other Indian startups that are aiming for a public listing next year include furniture tech startup Pepperfry, logistic tech startup Delhivery, among others.

Edtech giant BYJU’s all set to go for its initial public offering (IPO) in the next 8-10 months. Sources have confirmed to Inc42 that Byju Raveendran-led edtech startup will hit the public market early next year.

IPO-bound hospitality giant OYO has increased its authorised share capital from its existing INR 1.17 Cr to INR 901 Cr. As per the regulatory filings accessed by Inc42, in an general meeting held on September 1, 2021, OYO’s board has approved of increasing the authorised share capital from INR 1,17,80,010 to INR 9,01,13,59,300

Ola will be going public ahead of Ola Electric as it is a more mature business. Ola will list on the stock exchange by next year, but did not hand out a specific timeline, according to Bhavish Aggarwal.