Homegrown wearables and audio device brand Boat has announced its plans to go public with an IPO valued at $300-500 million in the next financial year, according to sources. The company has roped in ICICI Securities, Goldman Sachs, and Nomura as its lead bankers, with ICICI Securities taking charge of the offering. The New Delhi-based firm is reportedly targeting a valuation above $1.5 billion, though final figures may fluctuate as the IPO approaches.
Boat’s IPO Revival After Initial Setback
This isn’t Boat’s first attempt at entering the public market. The company had filed for an IPO in 2022, but unfavorable market conditions forced it to halt its plans. Instead, Boat secured $60 million in private funding through convertible preferred stock, with investments led by Warburg Pincus and Malabar Investments, valuing the company at a minimum of $1.2 billion at the time.
The revived IPO plan signals Boat’s confidence in its growth trajectory and market potential, despite the recent challenges faced by the wearables segment. Sources suggest that the public offering will aim to capitalize on the company’s strong market position and operational improvements over the past year.
Financial Performance: Revenue Dips but Losses Narrow
Boat reported a 5% dip in revenue, amounting to ₹3,285 crore for FY24. However, the company managed to significantly reduce its net losses, halving them to ₹70.8 crore from previous levels. This improvement in profitability is attributed to operational efficiencies and a robust Diwali sales season, which contributed to a boost in demand.
Despite a slow performance in the broader wearables sector, Boat managed to record positive EBITDA, showcasing resilience in a competitive market. These financial metrics may bolster investor confidence as the company heads towards its public listing.
Dominance in India’s Wearables Market
Founded in 2015 by Aman Gupta and Sameer Mehta, Boat has emerged as a leading player in India’s wearables and audio device market. According to IDC data for Q2 FY2024, the company holds a commanding 26.7% market share in India’s wearables segment.
Over the years, Boat has raised $171 million in funding, leveraging these resources to expand its product portfolio and strengthen its distribution network. Known for its affordable yet stylish products, the brand has built a loyal customer base across the country, cementing its position as a household name in the wearables space.
Market Prospects and Strategic Timing
Boat’s IPO comes at a time when the wearables industry is witnessing a slowdown but retains long-term growth potential. The company’s decision to list during the next financial year could be strategically timed to coincide with a potential recovery in consumer sentiment and investor appetite.
The IPO will not only provide Boat with the funds needed to scale its operations but will also mark a significant milestone in its journey as one of India’s most prominent consumer electronics brands. With strong backing from ICICI Securities, Goldman Sachs, and Nomura, the public issue is expected to draw substantial interest from institutional and retail investors alike.
Boat’s upcoming IPO underscores its ambition to solidify its market leadership while addressing challenges in the wearables sector. As the company navigates the complexities of a public offering, its improving financial health, strong market presence, and strategic partnerships position it as a promising candidate for investors seeking opportunities in India’s consumer electronics space. The coming months will reveal whether Boat can ride the wave of investor enthusiasm and achieve its ambitious valuation target.