boAt’s Road to Recovery, Ready for a Second IPO Attempt in 2025

boAt Second IPO News

boAt, one of India’s leading brands in audio and wearables, has showcased a strong financial recovery in FY24 by significantly reducing its losses and achieving EBITDA profitability. This positive turnaround comes after a challenging FY23, where the company reported losses for the first time in its history.

However, FY24 has been a testament to boAt’s resilience, with the company cutting its net losses by 47% to INR 53.6 Cr, compared to INR 101 Cr in FY23. The company’s recovery is all the more impressive, considering the competitive and evolving market landscape in which it operates.

The Road to Recovery

boAt’s losses in FY23 were largely attributed to its strategic investments aimed at expanding its product range, particularly in the smartwatch segment, and establishing local manufacturing capabilities within India. These initiatives were crucial in the brand’s ambition to diversify its product portfolio and enhance supply chain efficiencies.

The company also sought to reduce dependency on imports by strengthening its local presence. However, this aggressive push led to increased operational costs, and the company posted its first net loss in FY23, marking a significant dip from its previous profitability of INR 68.7 Cr in FY22.

Despite the recovery in profitability, boAt’s revenue fell by 5%, dropping from INR 3,284.7 Cr in FY23 to INR 3,121.6 Cr in FY24. While this decline signals some challenges in terms of market demand or sales execution, the company’s EBITDA profitability and significant reduction in losses indicate that its long-term strategies are paying off.

boAt Preparing for the Second IPO Attempt

boAt’s financial recovery is particularly important as the company prepares for its second attempt at an Initial Public Offering (IPO), which it plans to launch in 2025. The company had initially received approval from the Securities and Exchange Board of India (SEBI) in May 2022 for a public issue worth INR 2,000 Cr. However, due to unfavorable market conditions, boAt decided to delay its IPO plans. Instead, it raised INR 500 Cr from Warburg Pincus and Malabar Investments in late 2022 to strengthen its financial foundation.

With improved profitability in FY24, boAt’s second IPO attempt will likely be crucial for securing fresh capital and accelerating its growth ambitions. Going public could provide the company with new avenues to expand its business, innovate further, and stay ahead of competitors in the fast-growing wearables market.

A Growing Brand with Strong Investor Backing

Founded in 2015 by Sameer Mehta and Aakash Gupta, boAt has grown to become one of India’s most recognized brands in the direct-to-consumer (D2C) space. Known for its stylish, affordable headphones, earphones, smartwatches, and speakers, boAt has quickly built a loyal customer base.

The brand’s rapid success has attracted investments from major firms like Qualcomm Ventures and Warburg Pincus, with notable support from Bollywood actor Ranveer Singh. To date, boAt has raised around $177 Mn in funding, bolstering its position in the competitive consumer electronics market.

Future Prospects and Challenges For boAt

Despite its recent financial recovery, boAt faces intense competition from both domestic and international players in the wearables market. However, the company’s focus on innovation, expansion into new product segments, and a strong local supply chain are expected to help it navigate these challenges. By maintaining a balance between affordability and quality, boAt continues to resonate with Indian consumers, and its market presence remains strong.

Looking ahead, the planned IPO in 2025 will be a pivotal moment for boAt. The fresh infusion of capital could allow the brand to further expand its product lines, tap into new markets, and solidify its position as a leader in the audio and wearables industry. As the company gears up for this significant milestone, all eyes will be on its next steps in this competitive landscape.


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Frequently Asked Questions (FAQs)

1. What contributed to boAt’s financial recovery in FY24?

boAt significantly reduced its net losses by 47% in FY24 through cost management, enhancing local manufacturing capabilities, and expanding its product range, particularly in the smartwatch segment. These strategic initiatives helped improve its profitability despite a slight decline in revenue.

2. Why did boAt experience losses in FY23?

boAt’s losses in FY23 were primarily due to increased operational costs from expanding its product portfolio and investing in local manufacturing to reduce import dependency. The company aimed to strengthen its supply chain and introduce new products, which led to higher expenses.

3. What was the extent of boAt’s losses in FY23?

boAt reported its first-ever net loss in FY23, amounting to INR 101 Cr, after posting a net profit of INR 68.7 Cr in FY22.

4. Has boAt’s revenue grown in FY24?

While boAt improved its profitability in FY24, its revenue fell by 5%, from INR 3,284.7 Cr in FY23 to INR 3,121.6 Cr in FY24. Despite the slight revenue decline, the company’s focus on operational efficiency and product diversification helped achieve EBITDA profitability.

5. Is boAt planning to launch an IPO?

Yes, boAt plans to launch its second IPO attempt in 2025. The company had initially planned to go public in 2022 with an INR 2,000 Cr public issue, but it postponed the IPO due to unfavorable market conditions. Now, with improved financial performance, boAt is gearing up for the IPO again.

6. What was boAt’s original IPO plan, and why was it delayed?

boAt received approval from SEBI in 2022 for a public issue worth INR 2,000 Cr. However, the company decided to delay the IPO due to market instability. Instead, boAt raised INR 500 Cr from Warburg Pincus and Malabar Investments in late 2022 to strengthen its financial foundation.

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