Compiled by Harsh Gada
BoAt (“Imagine marketing services ltd.”) is an India-based company which was incorporated on 1st November 2013. The brand established itself in 2015 that markets earphones, headphones stereos, travel chargers, premium rugged cables and speakers. Launched in 2016 by Aman Gupta and Sameer Mehta as an audio-tech startup.
The company, which was founded in 2014, is backed by Fireside Ventures, Qualcomm Ventures LLC and South Lake Investment Ltd, an affiliate of the Warburg Pincus Group.
The company seeks to identify fast-growing, lifestyle-oriented product categories with high consumer engagement and large market opportunities and disrupt the incumbent industry landscape. The company endeavours to achieve this by launching distinctive and aspirational products having a clear value proposition at accessible prices, specifically tailored for the Indian audience and marketed towards the rapidly emerging online audience of young, digitally-enabled and trend-conscious consumers in India.
In the IPO, there will be a fresh issue of Rs 900 crore and an offer for sale (OFS) of Rs 1,100 crore by its existing promoters and shareholders. Each founder will put up a sale of up to Rs 150 crore worth of shares, respectively. South Lake Investment is looking to sell shares worth Rs 800 crore, according to the documents.
Direct-to-consumer (D2C) firm Boat, an Indian consumer electronics company owned by Imagine Marketing Ltd, has filed its documents with the Securities Exchange Board of India (SEBI) for a Rs 2,000-crore initial public offering (IPO).
Source:
SWOT ANALYSIS:
| COMPETITIVE STRENGTH:One of the largest Indian digital-first brands with leading market position.Strong market position & Clear market propositionDigital-first platform capabilities are targeted to enable growth and to build a presence across multiple consumer categories. | WEAKNESS:Reliant on third party suppliers for production of its product.Reliant on its relationships with certain online marketplaces and offline distributors.Pricing pressure from customers, online marketplaces or distributors may affect its gross margins. |
| OPPORTUNITIES:-Entering new geographies and international markets can significantly contribute towards the growth of the business.Increasing trend of customer spend on smart wearables. | THREATS:The company faces competition from different unknown brands available on the marketplace.Heavily reliant on one brand. |
FUTURE PROSPECTS
- Build on its market leadership position in its existing core, fast growing categories.
- Expand presence into adjacent product categories
- Continue to invest in building its brand including its flagship “BOAT”
- Diversifying its suppliers and contacts manufacturer network
- Investing ahead of the curve in its research and development capabilities
- Expand into international markets primarily within its core audio and wearables categories.
CONSOLIDATED FINANCIAL SUMMARY OF BOAT
| (`₹ in millions) | FY19 | FY20 | FY21 |
|---|---|---|---|
| REVENUE FROM OPERATIONS | 2,258.49 | 6,091.07 | 13,137.16 |
| EBITDA | 141.40 | 762.39 | 1,344.77 |
| PAT | 80.37 | 477.98 | 865.37 |
| GROWTH RATE | 6.2% | 33.9% | 59.9% |
| FUNDS RAISED TILL DATE DateTransaction NameMoney RaisedLead InvestorMay 3, 2018Venture Round$802KFireside VenturesJuly 17, 2019Debt Financing$2.67 millionNavi TechnologiesJuly 26, 2019Debt Financing$2.13 millionInnoVen CapitalSeptember 1, 2020Debt Financing$3.34 millionInnoVen CapitalJanuary 5, 2021Series B$100 millionWarburg PincusApril 16, 2021Series B$6.68 millionQualcomm Ventures |
CONCLUSION
- BoAt is a new aged consumer electronic company with some notable jewels in its crown
- The fifth largest wearable brand in the world
- Profitable startup
- Not closing a single financial year in loss since 2015
- It’s aiming to provide more and more products to satisfy the increasingly high demand for technological gadgets and bring them at affordable rates to its users with style!
- Lastly, it’s also focusing on helping Indians get all the quality technological devices without letting them rely on the other foreign brands
- All these factors will support the IPO and help it receive a healthy listing.
