Boat gears up for a $300-500 million IPO next year, eyeing a valuation over $1.5 billion, amid broader market consolidation and strategic international expansion plans.
Boat, a prominent Indian brand specialising in wearable and audio products, has appointed ICICI Securities, Goldman Sachs, and Nomura as bankers for its anticipated initial public offering (IPO) slated for next year. The company is reportedly aiming to raise between $300-500 million, targeting a valuation exceeding $1.5 billion. These plans mark Boat’s reentry into the public market arena after it previously shelved an IPO attempt in 2022 due to unfavourable market conditions, opting instead to secure $60 million through private capital infusion.
The upcoming IPO, expected in the next financial year, comes on the heels of a mixed financial performance. Despite a 5% dip in revenue to Rs 3,285 crore in FY24, Boat managed to halve its losses to Rs 70.8 crore and achieved positive earnings before interest, taxes, depreciation, and amortization. The reduction in losses and positive earnings are part of a broader consolidation in the sector, buoyed recently by a sales uplift during the Diwali festival period after several quiet quarters.
This strategic move follows a trend among new-age firms in India, with companies like Swiggy, FirstCry, and Ola Electric also entering the public market this year. As part of its preparation, Boat has been refining its business plan, drawing from its previous draft filings and insights gathered since. Moreover, the company is eyeing international expansion, with plans to begin operations in the UAE, as stated by cofounder Aman Gupta.
Despite the vibrant sales during the festive season, the wearables sector has seen a 10% drop in shipments in the June quarter, attributed to cautious inventory management and a slowdown in new product introductions. Looking ahead to FY25, Boat is focusing on enhancing its profitability through various measures, including optimizing warranty costs and curbing marketing expenditures.
