Exclusive: Ahead Of INR 2,000 Cr IPO, D2C Brand boAt Converts Into Public Company

Ahead of what is said to be the first Indian D2C startup heading for a public listing, boAt has passed a resolution to convert itself into a public company. 

According to the latest regulatory filing, in a board meeting dated January 18, 2022, the company has passed a resolution to convert its parent company name from Imagine Marketing Private Limited to Imagine Marketing Limited. 

While boAt has never shared or announced any official details about its IPO, this resolution further proves the startup is indeed gearing for its public listing. Conversion of a private limited company to a public company is a mandatory requirement for a startup heading for an IPO. It is after this step, the startup will be eligible to file its draft red herring prospectus (DRHP) which includes all the details about the IPO offer with market regulator SEBI. 

Inc42 had last week reported that the Delhi-based consumer electronics brand is intending to raise about INR 2,000 Cr through IPO and is planning to file the DRHP with SEBI as early as this week.

According to Inc42 sources, the IPO offer will include a fresh issue of shares worth INR 1,000 Cr and an offer for sale worth INR 1,000 Cr. To manage its IPO, the startup has already roped in Credit Suisse, Bank of America, Axis Bank and ICICI Securities.

boAt will also become one of the handful of Indian startups who are profitable and going for IPO. 

The financial year ending March 31, 2021 (FY21) stood as a fantastic year for boAt as it crossed INR 1,500 Cr in revenue. boAt clocked INR 1,511 Cr from revenue from operations, whereas it posted INR 19.57 Cr in other income, thus taking the total income to INR 1,531 Cr, a 2X rise from INR 704 Cr it posted in FY20.

The startup clocked an EBITDA of INR 127.1 Cr in FY21.  In terms of expenses, boAt saw a 122% increase from INR 637.5 Cr in FY20 to INR 1,420 Cr in FY21. 

The Delhi-based consumer electronic startup’s profit after tax rose to INR 78.6 Cr in FY21, a 61% from INR 48.85 Cr it witnessed In FY20. 

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

The startup has till date raised more than $116 Mn across six funding rounds and counts Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Fireside Ventures, among others as its investors. 

Earlier this month, boAt acquired Singapore-based wearable company KaHa Pte Ltd (Cove IoT). The Indian D2C brand with the acquisition will be looking to augment its wearable products with KaHa’s concept design, electronic firmware, algorithm development, and other capabilities.

Last week, boAt also collaborated with Indian beer manufacturer Bira 91 to launch ‘BOOM’ audio collection. The limited-edition headphones and Bluetooth speakers will be sold through Bira 91’s merchandise store and the boAt website. 

In terms of competition, boAt pits against domestic manufacturers such as  Mivi, and Leaf Studios. In a more premium segment, the startup competes against giants such as Sony, Bose, Yamaha, Sennheiser, among others. 

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