The boAt which is a headphone maker has raised $100 million from Warburg Pincus which is a private equity firm at a valuation of $300 million. Who acts as the companies local hero in electronics manufacturing and its growth prospects. A four-year-old company is the one who is going to use the fund to increase its development, and research capabilities, give a boost in manufacturing in the country, also expand its product portfolio. Co-founder of boAt, Aman Gupta commented that the investment is great news for the company and the entire direct-to-consumer sector. AAs they make efforts to ramp up our manufacturing and global supply chain, at the right time the investment came.
In the electronics manufacturing sector boAt has emerged as a local champion in which only a few Indian companies have been able to make a mark. The Delhi-based company reached the top five in the global wearables market in the September quarter which is the first Indian company to do so which was commented by a researcher IDC. Micromax which is India’s second-largest mobile phone seller in India was driven out of the business by the arrival of better and cheaper Chinese phones about five years ago. Gupta and Sameer Mehta are the ones who founded boAt They started it off as a seller of audio products like headphones, soundbars, earphones, and speaker, but now it has grown into a lifestyle brand for millennials, and with the launch of its first smartwatch Boat Storm, and expanded into ‘wearables’ last quarter. China and Taiwan are where the company sources most of its components.
The investment in boAt gives it an entry into the wearables market in India, and burgeoning audio. Managing director and head of Warburg Pincus India, Vishal Mahadevia said that they see an acceptable growth story in boAt, and also believe that the company is well developed to build upon the strong leadership it has craved out within the industry. The early investor of boAt was Fireside Ventures and has put Rs 21 crore up until now. In the lifestyle accessories segment, the boAt has grown to become the market leader. This is considered as an example of consumer insights, smart pricing, focused marketing, said the founder and managing partner of Fireside Ventures, Kanwaljit Singh.