BoAt Prepares $300-500 Mn IPO, Eyes $1.5 Bn Valuation: Report

Homegrown wearable and audio brand, BoAt, is advancing toward an Initial Public Offering (IPO) next year, having selected ICICI Securities, Goldman Sachs, and Nomura as lead bankers, according to media reports. 

The company is reportedly targeting a valuation exceeding USD 1.5 billion, with the IPO expected to raise between USD 300 million and USD 500 million. However, sources indicate that the final figures may shift closer to the filing date, as per media reports.

BoAt initially filed for a public listing in 2022 but postponed the plans due to challenging market conditions, according to media reports. 

Instead, it raised USD 60 million in private capital through convertible preferred stock notes to support its operations.

Boat, co-founded in 2015 by Aman Gupta and Sameer Mehta, initially filed for a public offering in 2022 but delayed its plans due to challenging market conditions. 

In the interim, BoAt secured USD 60 million in private funding through convertible preferred stock, backed by investors Warburg Pincus and Malabar Investments, valuing the company at a minimum of USD1.2 billion.

ICICI Securities will take the lead on the IPO, the sources said. Despite experiencing a 5 per cent revenue drop in FY24, reaching Rs 3,285 crore, BoAt reduced its losses significantly to Rs 70.8 crore, as per media reports. 

The company saw a lift in sales during the recent Diwali season, helping it contend with an increasingly competitive market, according to media reports.

The rapid expansion of quick commerce in urban areas has reshaped consumer shopping habits, as per media reports. 

Approximately 46 per cent of consumers are reportedly buying less from traditional Kirana stores, with over 82 per cent moving at least 25 per cent of their purchases to on-demand platforms that offer 10-30 minute delivery options, according to media reports.