boAt drops its IPO proposal and plans to raise $60 million from Warburg and others

Through a South Lake Investment affiliate, Warburg Pincus took part in this round. Through a private issue of preference shares, the company will obtain this growth capital.

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Imagine Marketing Pvt. Ltd., which owns the wearables and audio equipment brand boAt, is receiving around $60 million (Rs.500 crore) in a new round of equity fundraising that is being co-led by Warburg Pincus, an existing investor, and Malabar Investments, a brand-new investor. The company decided against going public due to worries about the state of the market.

Through one of its affiliates, South Lake Investment, Warburg Pincus took part in this round. This growth capital will be obtained by the company through a private issue of preference shares.

The deal will give the firm a value of about $1.4 billion, which is the same as what it probably sought during its initial public offering.

The company would use the investment primarily to expedite ambitions for ramping up the smart watch category and expanding business across channels and geographies (both within and outside India). Additionally, it aims to strengthen its R&D and design capabilities, expand local manufacturing, and further advance the audio category.

“We now want to make smartwatches our second core and will replicate the boAt digital playbook to become global leaders in this category as well. The new funding will allow us to invest significantly to disrupt the smart watches spaces with more innovative products,” said Aman Gupta, co-founder and chief marketing officer at boAt.

The Mumbai-based business filed its DRHP in January of this year in order to raise 2,000 crore through an IPO (IPO). However, due to the challenging market conditions, the company put the listing plans on hold, just as a number of other startups, including PharmEasy and Droom Technologies.

Through collaborations with a number of top EMS companies in India, including Dixon, with whom it has also formed a manufacturing joint venture, the company is also broadening its production footprint. In the past, the startup has engaged into similar agreements with top international firms like Qualcomm (also a shareholder in boAt), Dolby, and Dirac to increase the competitiveness and quality of its products.

According to the brand, it ended the fiscal year 2021–2022 with revenues of around 3,000 crore.

The corporation filled up its top management early this year with important 6 hirings, bearing in mind also its ambitious IPO objectives.

BoAt got an unknown amount of cash from Qualcomm Ventures, the investment division of Qualcomm Inc., a leader in wireless technologies, in April 2021. Prior to that, Warburg Pincus, a major player in private equity, contributed Rs.735 crore to the company’s series B round of capital.