Boat’s parent company, Imagine Marketing, is a digital-first consumer products firm that will be one of the leading digital-first brands in India. The company seek to identify fast-growing, lifestyle-oriented product categories with high consumer engagement and large market opportunities and disrupt the incumbent industry landscape. Call us for boAt share price today, live best rates, two way quotes, ipo details.
It was created in 2013, and its flagship brand “boAt” was introduced in 2014. It has a wide range of items. The flagship brand “Boat” has gained market leadership in India in both volume and value across a number of high-growth consumer categories, including audio and wearables.
boAt is the fifth-largest wearables brand globally. In India, boAt competes with brands such as OnePlus, Samsung, Realme, JBL, Bose and Palred (Ptron).
Its portfolio includes products under its flagship “boAt” brand, as well as under other brands such as “RedGear” – its value-oriented gaming accessories brand; “TAGG” – its premium audio and wearables brand; “Misfit” – its personal care and grooming sub-brand; and “DEFY” – its value-oriented audio brand.
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The company retails at Croma outlets and in Myntra, Amazon, Jabong, and Flipkart. Quality performance of the boAt products has helped the company a lot in achieving the growth it has witnessed over the years. The top competitors of the Boat are Gonoise, Mivi and Skullcandy.
Company website https://www.boat-lifestyle.com
Latest Updates & Developments
The world’s No. 2 hearables and wearables maker Boat is looking to foray into international markets, including the Middle East and South East Asia, in 2023, after emerging as the leader in the domestic market in 2022.
Sameer Mehta, co-founder and chief product officer of Imagine Marketing Ltd, the parent, said that proposed IPO may be revived once the firm doubles its manufacturing capacity to 20-25 million units by FY24 through partnerships, and by establishing its own plant in India.
Mehta said production-linked incentives and exemption of import duties on components for local assembly could boost the hearables and wearables sector further.
In October 2022, wearables startup boAt raised $60 million ( ₹500 crore) from private investors. New investor Malabar Investments and Warburg Pincus has participated in this round through one of its affiliates South lake Investment. The company will secure this growth capital in as private placement through preference shares. The transaction values it around $1.4 billion.
Imagine Marketing plans to use the funds to expand its smartwatch category and scale up business across channels and markets in India and abroad. It also plans to boost its audio category, enhance research and design capabilities, and build up local manufacturing.
The company is also diversifying its manufacturing in partnerships with various leading electronic manufacturing services (EMS) players in India, including Dixon, with whom it has also created a manufacturing joint venture.
It has previously made similar arrangements with leading global companies such as Qualcomm (also a shareholder in boAt), Dolby and Dirac to make higher quality products more competitively.
In April 2021, boAt received an undisclosed amount from Qualcomm Ventures. A year earlier, it raised ₹735 crore from Warburg Pincus.
| Particulars | FY 2020 | FY 2021 | FY 2022 |
| Revenue | 609.11 | 1,313.72 | 2,872.90 |
| Revenue Growth (%) | 169.70 | 115.67 | 118.68 |
| Expenses | 544.74 | 1,202.16 | 2,786.99 |
| Net income | 47.80 | 86.54 | 68.70 |
| Margin (%) | 7.85 | 6.59 | 2.39 |
| ROCE (%) | – | 25.59 | 9.29 |
| Debt/Equity | 0.68 | 0.09 | 1.51 |
| EBITDA (%) | 12.52 | 10.24 | – |
| EPS | 4.42 | 7.97 | 5.84 |
boAt was ranked #1 in India among the wireless wearables brands by value and volume and #2 among smartwatch brands in India in terms of volume. Moreover, its market share in both wireless wearables and smartwatch segments has consistently increased over time.
Joint Venture, acquisition, funding updates
the boAt has raised a total amount of $116.3 million in funding over 6 funding rounds.
| Date | Transaction Name | Money Raised | Lead Investor |
|---|---|---|---|
| April 16, 2021 | Series B | $6.68 million | Qualcomm Ventures |
| January 5, 2021 | Series B | $100 million | Warburg Pincus |
| September 1, 2020 | Debt Financing | $3.34 million | InnoVen Capital |
| July 26, 2019 | Debt Financing | $2.13 million | InnoVen Capital |
| July 17, 2019 | Debt Financing | $2.67 million | Navi Technologies |
| May 3, 2018 | Venture Round | $802K | Fireside Ventures |
boAt, operated by Imagine Marketing Pvt Ltd, had raised nearly Rs 750 crore ($100 million) from the US-based Warburg Pincus early this year. Qualcomm Ventures invested Rs 50 crore in April at a valuation of Rs 2,200 crore. In 2019, boAt received Rs 20 crore as venture debt from BAC Acquisitions, cofounded by the Flipkart founder Sachin Bansal.
In April, boAt had partnered with 6 Indian Premier League (IPL) teams as their official audio partner. boAt’s brand ambassadors include KL Rahul, Rishabh Pant, Hardik Pandya, Shikhar Dhawan, Prithvi Shaw and Mayank Agarwal.
Wearables market – The Gap In The Market
Ultra-premium (costs ₹15k+) – Apple, Bose
Premium (costs ₹10-15k) – JBL
Sub-Premium (costs ₹5-10k) – Sennheiser
Economy/Affordable (costs ₹1-5k) – BoAt, Mivi
Cheap (costs ₹50-500) – Imported mostly from China and Vietnam
BoAt focuses on selling wired earphones at the lowest prices possible. Their products are priced between ₹350 to ₹550 as no brand sells wired earphones in this price segment.
The company has always created products that have led to demand-pull, which means they don’t have to market its launched products. It has already become popular owing to its good quality and low price.
Initially, it started selling online as it is easier to manage the distribution & sale of products that way. Then slowly, with time, they entered the offline market because, in small cities & rural India, people were still buying these products from nearby retail shops.
boAt market valuation
The company has around 14.3 crore equity shares. So at current price of around Rs 725 per share, shares of Imagine Marketing (boAt) are available at market capitalisation (mcap) of about Rs 10368 crore.
Delhi-based earphones headphones maker boAt which is operated by Imagine Marketing Limited has filed INR 2,000 crore DRHP with the market regulator SEBI. The D2C brand’s offer consists of INR 900 Cr of fresh issue of shares, and upto INR 1,100 Cr for offer-for-sale. In its IPO this year, Boat is projected to seek a valuation of $1.5-2 billion.
As per the DRHP documents, founders Aman Gupta, and Sameer Mehta will be offloading shares upto INR 150 Cr both. Among investors, South Lake Investment LTD will be offloading upto INR 800 Cr during the IPO. The company plans to utilise IPO proceeds to repay or prepay debt.
The DRHP documents further revealed that Boat, one of the largest direct-to-consumer, audio-focused electronics brands in India, may further consider a pre-IPO round. The startup in consultation with Book Running Lead Managers (BRLMs) likely to raise upto INR 180 Cr as pre-IPO placements.
boAt shareholding pattern
In terms of shareholding pattern, both the founders Sameer Mehta, and Aman Gupta hold 28.26% of equity share capital on a fully diluted basis. This means, both the founders hold a total of 56.52% in the company. South Lake Warburg Pincus is the third largest shareholder with 36.48% in the D2C brand, followed by Fireside with 3.76% and Qualcomm with 2.60% stake.
boAt is likely to be the second Indian startup company heading for an IPO where the promoters hold more than 50% stake, thus giving them the control of the company.
As per the documents, the startup intends to utilise the net proceeds of the IPO for repayment/ prepayment, in full or part, of certain borrowings and for general corporate purpose.
Ratings & Outlook
Ratings 7 / 10
boAt electronics share price is likely to rise as the company has an attractive offering of wide-ranging, high-quality and aspirational lifestyle-focused consumer products at accessible price points, under its brands. Boat’s valuation is around Rs 2200 crore, as of April 16, 2021.