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Not portable are music players! We all desire such portable gadgets, so that we may all take them on our travels. This concept led to the invention of headphones and earbuds as a portable replacement for traditional music systems. These portable devices provide the same experience as speakers and music systems since they are convenient to transport. With the advent of headphones, music enthusiasts, listeners, and other professionals may now enjoy their favorite music, view the movies of their choosing, and converse with friends and coworkers in private without disturbing others. There are only a few Indian producers to be found, despite the fact that headphones have been used in India for a long time, just like they are used everywhere else in the world. One of their top competitors is the boAt firm, and the brand just steals the show!
Due to the high quality, reasonable prices, and premium designs that the company offers, the boAt has an astounding selection of earphones, earbuds, headphones, and wireless speakers that set them apart. India’s top earwear audio brand, boAt, was established in 2016. With the help of the business, customers can simultaneously experience spirit and vitality.
As of December 2020, boAt has been ranked as the fifth-largest wearables brand worldwide.
If you want to get a peek of the boAt success story, StartupTalky offers all the information you need, including information on the company’s business model, revenue model, startup history, funding, founders and team, investors, growth, rivals, and future plans.
boAt – Company Highlights
| Startup Name | boAt Lifestyle |
|---|---|
Headquater | New Delhi, India |
boAt – About
An Indian business called boAt sells audio-focused electronic devices such wireless speakers, earbuds (Airdopes), wired and wireless headphones and earphones, home audio gear, premium tough cables, and a variety of other technology accessories.
boAt – Industry
boAt thrives in the thriving and constantly changing consumer electronics sector, which is essential to India’s expanding technological landscape. The rising demand for electronic gadgets and devices has propelled this industry’s impressive rise. BoAt is well-positioned in this dynamic industry, ready to adapt to the shifting desires of both tech aficionados and tech-savvy customers.
The Consumer Electronics market in India is anticipated to generate $69.15 billion in sales in 2023, with an annual growth rate of 5.89% (CAGR 2023-2028), according to Statista.
boAt – Startup Story
In order to appeal to millennials, the creators planned to establish a lifestyle brand that would provide them stylish audio accessories. This notion was first proposed by boAt. According to a research from 2020, the business started out making and selling cables but quickly moved into other markets to serve more than 800,000 clients. BoAt was founded with only the founders’ own money and had a bootstrapped capital of about Rs 30 lakhs.
boAt – Founders and Team
The two men that founded boAt are Sameer Mehta and Aman Gupta.
Sameer Mehta
Co-founder, chairman, executive director, and chief product officer (CPO) of boAt are all titles that belong to Sameer Mehta. Moreover, he serves as Kores (India)’s Executive Director. Redwood Interactive was owned by Sameer Mehta, who began his professional career there. Mehta finished his education at the Mumbai-based St. Xavier School before attending the Narsee Monjee College of Commerce and Economics to earn his bachelor’s degree in commerce. Additionally, boAt’s parent firm, Imagine Marketing Pvt. Ltd., was created by Sameer.
Aman Gupta
Executive Director, co-founder, and Chief Marketing Officer (CMO) of boAt is Aman Gupta. He attended Delhi University for his bachelor’s in business, after which he joined the Institute of Chartered Accountants of India. Gupta also pursued an MBA in Finance and Strategy at the Indian School of Business and an MBA in General Management and Marketing at Northwestern University’s Kellogg School of Management as an exchange student.
He began his career at Citibank as an assistant manager and eventually served as the company’s co-founder and CEO. Then Aman became a Senior Management Consultant at KPMG. At HARMAN International, he also held the position of Sales Director. In the end, Aman Gupta and Sameer established boAt in 2016. Additionally, he was a founding member of Imagine Marketing India, which later evolved into boAt.
The number of staff at boAt ranges from 200 to 500.
boAt – Shareholding
Warburg Pincus boasts of having 36.48% of the shares of the corporation, which explains why it holds the majority of the boAt stakes. Next in line with 28.26% of the total shares are the co-founders of the boAt, Aman Gupta and Sameer Mehta. Fireside Ventures follows with 3.76% of the shares, and Qualcomm Ventures follows with 2.6%. Others hold the remaining 0.64% of the boAt’s stock.
boAt – Name, Tagline, and Logo
The company’s motto is “plug into nirvana,” according to boAt. The company wants to provide the nation’s audiophiles and other users a sense of nirvana, which is defined as achieving total peace and freedom.
boAt – Business and Revenue Model
To build a strong customer base, the company concentrated on these 3 crucial market strategies:
Customer Needs
Consumers' Wants
Consumers' Buying PatternsThe items were made accessible, enduring, and fashionable thanks to the founders’ application of their research to the designs. BoAt focuses on establishing a relationship with its customers in which it views the customers as members of the boAt family. They also put a lot of emphasis on the boAt brand and portrayed it as an Indian one. Because Indians are huge fans of both cricket and Bollywood movies, boAt decided to use them as brand ambassadors for the company’s marketing efforts. With clever pricing and appealing appearance, all of these enabled the business build a sizeable customer base and become a billion-dollar firm in India. BoAt currently asserts that four devices are sold every minute, or 6,000 units every day.
The following are some additional tactics that boAt used to succeed in the Indian market’s audio segment:
Putting the needs of the users first, boAt has chosen to refer to its users as “boAtheads,” integrating them into their community rather than keeping them nameless.
Numerous improvisations: boAt is renowned for its creative improvisations. After seeing a never-ending stream of complaints regarding Apple charging cables, the business developed an unbreakable cable for Apple mobile consumers. BoAt worked quickly to design the fall-proof, sports-friendly headphones that are currently offered in a range of colors after recognizing the need for them.
boAt’s “Make in India” Drive: As part of its “Make in India” strategy, boAt has teamed with Dixon Technologies. Through the domestic production of essential parts including batteries, speaker drivers, plastic molds, and mechanics, this joint venture hopes to improve boAt’s manufacturing capabilities. This strategic partnership demonstrates boAt’s dedication to supporting domestic manufacturing and supplying the market with high-quality audio equipment. BoAt produced almost 15 million items in India in just FY23.
Posing as a lifestyle brand: Instead of referring to itself as a consumer electronics brand, boAt marketed itself as a lifestyle brand.
An ever-expanding catalog of products: boAt products are expanding constantly. BoAt is just introducing new items, backed by cutting-edge technologies and beautiful designs, in a variety of categories, including cables, chargers, and audio equipment. The Nirvana 525 ANC, the first wireless neckband earbuds powered by Dolby Audio, was released by boAt in June 2023, marking a milestone product launch.
Targeting their customers: The brand’s target market is young people and millennials, and the business is doing everything in its power to please them. This is how the business is moving forward quickly.
Digital marketing:
The business has made a point of avoiding traditional media and opting instead for internet marketing. Only social media sites like Instagram and others have emerged as boAt’s main sources of popularity.
BoAt generates most of its income from the sale of its goods and the associated delivery fees.
boAt – Funding and Investors
boAt has raised $177 million in total throughout the course of 7 investment rounds.
| Date | Transaction Name | Money Raised | Lead Investor |
|---|---|---|---|
| October28，2022 April 16,2021 January5，2021 September 1，2020 July26，2019 July17，2019 May3，2018 | Convertible Note-boAt Series B Series B Debt Financing Debt Financing Debt Financing Venture Round | S60 million S6.68 million S100 million S3.34 million S2.13 million S2.67 million S802K | Qualcomm Ventures Warburg Pincus InnoVen Capita InnoVen Capital Navi Technologies Fireside Ventures |
boAt IPO
boAt planned to go public in early 2022. According to sources from January 18, 2022, boAt became the first Indian D2C brand to submit a Rs 2,000 crore IPO application and it intended to submit its DRHP to SEBI in the last week of January 2022.
According to news dated May 18, 2022, the SEBI has given the Aman Gupta-led company approval for its Rs 2,000 crore IPO. Additionally, it disclosed that, in accordance with its DRHP, the offer for sale would have a maximum value of Rs 1,100 crore and the fresh issue of shares in the IPO would be worth up to Rs 900 crore. The founders of boAt, Aman Gupta and Sameer Mehta, would each be selling shares in the OFS worth up to Rs 150 crore, and Warburg Pincus, the company’s largest shareholder, which owns 36.48% of the company through its affiliate South Lake Investments, would be selling shares in the OFS worth up to Rs 800 crore.
BoAt delayed its intended public share offering, raising INR 500 crore ($60 million) instead from private investors due to persistent worries about the erratic stock market.
boAt – Growth and Revenue
Retail locations for the business include Croma stores, Myntra, Amazon, Paytm, and Flipkart. The company has benefited greatly from the superior performance of boAt products in accomplishing the success it has seen over the years.
Here is a brief overview of some of boAt’s most significant development milestones:
1. In just 4 years, boAt has amassed more than 800,000 customers.
2. It asserts that every three minutes, it expands its family by one boAthead.
3. Four units are sold by the company per minute, for a daily sales volume of nearly 6,000.
4. For more than five years in a row, the company has been profitable.BoAt’s net sales for FY23 surpassed a significant milestone and increased to about Rs 4,000 crore ($500 million), showing exceptional development from the prior fiscal years. BoAt reported net sales of Rs 2,873 crore in FY22, representing a notable growth rate of about 39.1% in FY23. Additionally, the brand’s development is much more obvious when measured against the net sales of Rs 1,314 crore in FY21.
BoAt’s revenue during FY22 can be broken down as follows:
1. Revenue for boAt more than doubled to Rs 2,873 crore in FY22 from Rs 1,314 crore in FY21.
2. However, compared to the prior year, boAt's profit dropped to Rs 68.70 crore from Rs 86.50 crore.
3. Around 18% of total income, which rose to Rs 515.5 crore in FY22 from Rs 54.8 crore in FY21 due to the sale of wearables, including smartwatches, was attributable to this category.
During FY22,
4. boAt made an additional Rs 81.5 crore in income from the sale of cables, chargers, men's grooming packages, and gaming accessories.
5. Interest on fixed deposits and other non-operating revenue was Rs 13.5 crore that the company recorded as finance income in FY22.boAt – Challenges
BoAt initially relied on founder finance of roughly Rs 30 lakh as it struggled to get money. The company was bootstrapped in its early years. Aside from this, the business encounters several difficulties every day in producing chic products at competitive prices and introducing them to a market already crowded with similarly capable rivals.
boAt – Acquisitions
BoAt has acquired two businesses: TAGG and KaHa Pte. Ltd., a Singapore-based startup developing smart wearable IoT (internet of things) products. BoAt enhances its wearables development with the integration of the KaHa Platform and aspires to build a complete health and wellness wearables ecosystem inside its product line.
| Acquiree Name | Date | Price |
|---|---|---|
| KaHa Pte | January 15, 2022 | – |
| TAGG | June 9, 2021 | – |
boAt – Partnerships
boAt has formed strategic partnerships with global companies such as Qualcomm (one of boAt’s investors), Dolby, and Dirac, enabling the company to incorporate cutting-edge global technology into its audio products. Through strategic collaborations and the in-house R&D facility, boAt Labs, the brand has achieved remarkable advancements in product innovation.
Recently, boAt has partnered with Amplify.ai and Meta to introduce a messaging experience that revolutionizes the way customers choose their ideal smartwatch. Through an interactive chatbot powered by advanced AI technology, customers can engage in conversational interactions to discover, evaluate, and select their perfect smartwatch. This partnership aims to provide unique and personalized experiences, offering customers a seamless and efficient smartwatch selection process.
These are just a few examples of boAt’s numerous partnerships, highlighting the brand’s commitment to innovation, technology, and customer satisfaction.
boAt – Awards and Recognitions
boAt has received honors and accolades from a number of organizations over the years. The following list includes some of the most notable ones:
According to Q3 CY21, the company was named the “Number 1 brand for truly wireless and earwear in India”.
The “5th largest wearable brand in the world in 2020” was acknowledged for it.
Six Indian Premier League (IPL) teams will have boAt as its official audio partner in 2021, according to the company.
With everyone from cricketer Hardik Pandya to actors Diljit Dosanjh and Kiara Advani, it has teamed.
In the 16th season of the IPL, boAt acted as the official wearable partner for RCB and GT and the official audio partner for KKR, enhancing its standing in the cricketing community.
boAt – Competitors
The top competitors of the Boat are Noise, Mivi, and Skullcandy.
Noise
One of boAt’s major competitors is Gonoise. It was established in 2014 and has its headquarters in Gurugram, Haryana, India. In the market for electronic equipment, noise is competitive.
Mivi
Another competitor of boAt is Mivi. It was established in 2015 and has its headquarters in Telangana, Andhra Pradesh, India. Mivi is active in the market for electronic devices.
Skullcandy
Another one of Boat’s main rivals is Skullcandy. It was established in 2003, with a main office in Park City, Utah. The electronics sector employs Skullcandy as well.
Other than these, competitors of boAt include pTron, Boult Audio, Fire-Boltt, and Ambrane.
boAt – Future Plans
The business thinks that purchasing earbuds at the same time as new cellphones is a constant trend. BoAt believes that this idea can help them succeed. The big phone manufacturers are reportedly working to establish new connections with audio firms. For instance, Apple has Beats, Samsung has JBL and Harman, and so on. In order to discourage users from purchasing headphones or earphones separately, these manufacturers are luring customers with tempting discounts.
‘That is where the market is moving’, says Aman Gupta.
Consumption of video will influence demand in the near future.
In order to meet the rising demand for technical gadgets, boAt is now working to offer an ever-growing number of products and deliver them to its customers in a stylish manner at low prices. The company seeks to prevent Indians from relying on other foreign brands by assisting them in obtaining all the high-quality technology gadgets they require from the domestic brand boAt. Additionally, boAt is aggressively developing a trust-focused approach to enter developing areas like Singapore and Vietnam, with a heavy emphasis on building a strong presence and securing a sizeable market share.
FAQs
What is boAt?
BoAt, an Indian firm that produces and sells electronic devices, was created by Aman Gupta and Sameer Mehta and is currently regarded as one of the country’s favorite audio and wearable brands.
When did boAt Company start?
2016 saw the founding of the boAt firm by Sameer Mehta and Aman Gupta.
Who are the founders of boAt?
Aman Gupta and Sameer Mehta are the two men that founded the boAt.
What is boAt’s revenue?
boAt’s net sales for FY23 climbed to Rs 4,000 crore ($500 million), a phenomenal increase from the net sales of Rs 2,873 crore for the prior fiscal year.
How much funding has been raised by boAt?
As of October 28, 2022, boAt Lifestyle had successfully raised $177 million over 7 fundraising rounds.
Is boAt an Indian company?
BoAt is an Indian corporation. Its headquarters are in New Delhi, India.
How much is boAt’s valuation?
As of April 16, 2021, boAt is valued at about Rs 2200 crore.
How are boat headphones?
The majority of reviews claim that boAt headphones are of average quality, fantastic in terms of both design and appearance, and affordable as well. Through the use of these attributes, the branch is helping boAt develop its brand reputation and trustworthiness.
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