Indian brand boAt popular for its personal audio products today announced that it has raised approximately $100 million (over Rs. 731 crore) from an affiliate of Warburg Pincus, a leading global private equity fund focused on growth investing. This comes after it raised $60 million (Rs. 440 crore) funding from South Lake Investment. Post-money valuation of boAt is estimated at over $300 million (over Rs. 2192 crore).
boAt said that it continues to achieve rapid revenue growth (100%+ over the past several years) and exhibits a strong profitability profile. The company recently emerged as the 5th largest wearable brand globally, according to Q3 2020 IDC data.
The investment by Warburg Pincus will enable the company to further fortify its leading market position, widen its R&D capabilities and product portfolio, and build on boAt’s efforts to create and support a manufacturing ecosystem under the Make-in-India initiative, enabling the manufacture of products in India.
Commenting on the transaction, Aman Gupta, Co-Founder, boAt said:
We welcome Warburg Pincus as a new investor into the company. This is a vote of confidence for our business model and growth prospects. The investment is great news for not only the company but for the entire D2C sector. The investment has come at the right time as we make efforts to ramp up our manufacturing and global supply chain.
Sameer Mehta, Co-Founder, boAt commented:
As boAt enters the next phase of growth and innovation, we look forward to benefitting from Warburg’s pedigree, collective experience and resources in helping us scale. Going forward, with the Government’s support, we will focus on building capabilities in domestic R&D and undertake vertical integration across both the hearable and wearable space to establish India as a global supplier.