[Funding Alert] boAt Raises Rs 500 cr To Fuel Expansion Into The Fast-Growing Smart Watches Category
[Funding Alert] boAt Raises Rs 500 cr To Fuel Expansion Into The Fast-Growing Smart Watches Category

Imagine Marketing Limited (parent company of boAt) announced its plans to fuel the expansion of its business given strong operating momentum across its categories.

The company is raising Rs 500 crore from its existing shareholder, an affiliate of Warburg Pincus, a global private equity fund, and new investor Malabar Investments.

This investment will enable the company to accelerate its plans to attain leadership in the smartwatches category, scale up its business across channels and geographies (both within and outside India), further strengthen its category leadership within audio, enhance its R&D and design capabilities, and support building a local manufacturing ecosystem under the Make-in-India initiative. 

“We have established clear leadership in our core personal audio category and are the number two player globally in earwear. It is a matter of great pride that a brand that was born in India is now ranked amongst the top brands in the world. 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. And we are thrilled that investors continue to have strong conviction and confidence in the boAt story,” said Aman Gupta, Co-founder, and Chief Marketing Officer, boAt. 

boAt transformed the personal audio market through a portfolio of well-designed, feature-rich products at affordable prices backed by distinctive lifestyle brand positioning, deep engagement with its boAtheads community, clutter-breaking digital marketing, and diversified omnichannel presence across online and offline markets. 

Partnerships with leading global companies like Qualcomm, a shareholder in boAt, Dolby, Dirac, and others have helped in bringing the best technology to consumers.

The brand entered the smartwatches category a few years ago and has made significant progress in expanding into this fast-growing space, established itself as one of the leading brands in the category, and taken large strides towards building a health and wellness wearables ecosystem. 

“We are very excited about the potential of smartwatches. The market today is in the early stages of evolution and most players don’t have control over the end-to-end stack to offer compelling features to consumers. There is a significant opportunity to build the category and launch more distinctive and technologically advanced products. Through boAt labs (our 120-person in-house R&D team) and our acquisition of KaHa Technologies, we are developing the next generation of products. These products will provide richer features and deeper insights to consumers on their health and wellness to enable them to lead more active and fulfilling lifestyles” added Sameer Mehta, Co-founder and Chief Product Officer, boAt.

Along with driving growth in the core audio category and adding smartwatches as a second core, the company is making significant progress in diversifying its manufacturing footprint via partnerships with various leading EMS players in India, including Dixon, with whom it has also created a manufacturing JV.

A significant proportion of boAt’s products are now being produced in India, nearly 1 million units every month and the company is also putting plans in place to take the brand overseas. 

The strong operating momentum these investments have created has resulted in boAt having built significant scale, it closed FY 2022 with net revenue of approximately Rs 3,000 crore while witnessing almost 100 percent YoY growth and building a profitable business and investing for the future.

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