 "Aman Gupta's Boat aims for an IPO in 2025 to raise $300-500 million at $1.5 billion valuation")
Boat, the well-known Indian brand for wearable and audio products, is gearing up for a significant milestone: a public listing in 2025. The company, co-founded by Aman Gupta and Sameer Mehta in 2015, has reportedly finalised top financial institutions, including ICICI Securities, Goldman Sachs, and Nomura, to steer its $300-500 million IPO. If all goes as planned, Boat could be aiming for a valuation north of $1.5 billion, though sources caution that these figures might shift as the filing date approaches, as per a report by the Economic Times.
This isn’t Boat’s first brush with IPO plans. Back in 2022, the company had prepared for a public offering but hit the brakes due to unfavourable market conditions.
Instead, it raised $60 million through private capital from investors like Warburg Pincus and Malabar Investments, with a valuation cap around $1.2 billion. Now, with renewed focus and a strategic push, Boat is once again aiming to make its public market debut in the next financial year.
Despite a challenging fiscal year, Boat has made strides in stabilising its finances. Revenue in FY24 dipped by 5 per cent, landing at Rs 3,285 crore, but the company managed to cut its losses by half, reporting a net loss of Rs 70.8 crore, as per the ET report.
The festive Diwali season provided a much-needed sales boost, lifting Boat’s performance after several subdued quarters. It even recorded positive EBITDA for FY24, a sign of growing financial health.
Impact Shorts
More ShortsThe wearables market, however, has seen mixed fortunes. The segment, which includes products like smartwatches and wireless audio devices, experienced a 10 per cent decline in shipments during the June quarter, influenced by cautious inventory strategies and a slowdown in new product launches. Boat’s audio business remained flat in the latter half of FY24, while both headphone and speaker sales struggled to pick up.
Boat’s journey has been marked by an aggressive approach to the wearables market, but this strategy has come at a cost. A heated price war among leading brands led to a drop in average selling prices, squeezing profit margins. Nonetheless, the company plans to strengthen its profitability in FY25 by optimising warranty costs and trimming down marketing and promotional expenses.
Boat is also exploring international expansion, with plans to enter the UAE market, as revealed by Aman Gupta at the ET Soonicorns Summit in September. As the brand gears up for its IPO, the timing seems ripe, with several Indian tech firms like Swiggy and Ola Electric already going public and others preparing to follow suit.
While the IPO market has seen mixed success stories, Boat’s robust position as India’s top wearables brand, boasting a 26.7 per cent market share in Q2 2024, could give it a solid platform for a promising debut. Investors and industry watchers will be keeping a close eye on how Boat navigates its public offering journey in the coming year.
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