Boat In-depth company deep dive report
About the Company
Imagine Marketing (boAt) is a digital-first consumer products company and one of the largest Indian digital-first brands in terms of revenue for FY 2021. It was founded in 2013 and is led by its flagship brand “boAt” which was launched in 2014. It has products in various segments. The company has driven innovation with features like ANC, low latency for gamers, Bluetooth calling, and AMOLED displays.
| NAME | IMAGINE MARKETING LIMITED (BOAT) |
| Type of Entity : | Unlisted Public Company |
| Listing Status : | Unlisted |
| Industry | Consumer Durables |
| Date of Incorporation : | 1 Nov, 2013 |
| Date of Last AGM: | 30 Oct, 2023 |
| Registered Address | Andheri, Mumbai, Maharasthra |
Timeline of Boat
- 2016: Founded and launched a wide range of earphones and headphones.
- 2018: Raised investment from Fireside Ventures.
- 2019: Established “boAt Labs,” an in-house R&D team.
- 2020: Became the number 1 earwear brand in India by volume.
- 2021: Launched Made-in-India wireless earphones and neckbands.
- 2022: Ranked as the #3 earwear and smartwatch brand globally by volume.
- 2023: Achieved the milestone of 1 million Made-in-India products.
Boat’s Strategic Overview
- Diverse Product Offering: High-quality, aspirational lifestyle consumer products available at accessible prices under multiple brands.
- Established Market Leader: Founded in 2013 with the flagship brand “boAt” launched in 2014. BoAt holds leading market positions in both volume and value in high-growth categories like audio and smartwatches.
- Focus on Fast-Growing Categories: Emphasis on sectors with high consumer engagement and significant market opportunities.
- Disruptive Approach: Launches distinctive, aspirational products with a clear value proposition, tailored for the Indian audience and marketed to emerging online and trend-conscious consumers.
Product Portfolio
- Wired Headphones and Earphones: High-quality wired audio devices offering rich sound, comfort, and durability, suitable for everyday use.
- Wireless Headphones and Earphones (Neckbands): Convenient wireless audio solutions featuring ergonomic designs, long battery life, and superior sound quality.
- True Wireless Stereo (TWS) Earbuds: Compact, fully wireless earbuds offering seamless connectivity, powerful sound, and features like touch controls and voice assistant integration.
- Bluetooth Speakers: Portable, high-performance speakers with immersive sound, robust build, and extended battery life, perfect for on-the-go music experiences.
- Home Theatre Systems and Sound Bars: Advanced audio systems providing cinematic sound quality for home entertainment, featuring easy connectivity and sleek designs.
- Smartwatches: Stylish wearables offering health and fitness tracking, Bluetooth calling, AMOLED displays, and other smart features tailored to active lifestyles.
- Gaming Accessories: Specialized gaming gear, including wired and wireless headsets, mice, and keyboards, designed for performance, comfort, and responsiveness in gaming.
- Personal Care Appliances: Reliable grooming tools like trimmers and grooming kits, designed for precision, ease of use, and versatility.
- Mobile Accessories: A range of essential accessories such as chargers, cables, power banks, and more, ensuring your devices stay powered and connected.
Management of the Company
Aman Gupta: Whole Time Director & Chief Marketing Officer
Aman Gupta, the Whole Time Director and Chief Marketing Officer of boAt, co-founded the company in 2016 alongside Sameer Mehta. BoAt specializes in earwear audio products, including headphones and travel chargers. Under the leadership of Gupta and Mehta, the company has successfully established itself as a prominent brand in the audio product market.
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Sameer Mehta: Whole Time Director & Chief Executive Office
Sameer Mehta is the Whole Time Director and Chief Executive Officer of boAt, where he also heads product research and development as the Chief Product Officer. A founder and promoter of the company, he has extensive experience in technology and product development. Mehta holds a bachelor’s degree in commerce from the University of Mumbai and previously co-founded Redwood Interactive, which owned the gaming brand ‘RedGear’ in India
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Vivek Gambhir: Chief Executive Officer and Executive Director
Vivek Gambhir is the Chief Executive Officer and Executive Director of boAt. He holds bachelor’s degrees in Science and Arts from Lafayette College and an MBA from Harvard Business School. Previously, he was the CEO and Managing Director at Godrej Consumer Products Limited and the Chief Strategy Officer at Godrej Industries Limited. Gambhir has also been a partner at Bain & Company in India and has served in leadership roles, including Co-chair of the CII National FMCG Committee. He is currently on the Advisory Board of the Central Square Foundation and writes a leadership blog.
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Industry Overview
- Market Growth: The India wireless audio market is projected to grow at a CAGR of approximately 17.22% during the forecast period.
- Growth Drivers:
- Higher smartphone penetration.
- Reduced internet connection pricing.
- Increased need for mobility and flexibility.
- Faster technological advancements and adoption.
- Key Factors:
- Rising popularity of entertainment devices among the younger population.
- Growing use of portable devices.
- Expanding adoption of wireless audio equipment in business sectors like events and contact centers.
- Technological Trends:
- Increasing demand for wireless innovations like Bluetooth and Wi-Fi.
- Rising popularity of earphones and headphones due to easy functionality, reliable sound quality, and compact design.
- Product Innovation:
- Market players are introducing new products and technologies, such as Samsung’s 2022 soundbars with Dolby Atmos and built-in Alexa support.
- Challenges:
- Stringent regulatory controls on audio equipment’s frequency spectrum.
- Potential hearing impairment risk from prolonged use at high volumes.
- Price sensitivity among Indian consumers, as wireless devices are generally more expensive than wired alternatives.
- Impact of COVID-19:
- Lockdowns led to increased use of audio equipment for home entertainment.
- Continued demand for wireless audio devices due to remote work, online learning, and home workouts.
Key achievements and rewards of boAt:
- Top Global Wearable Brand: Ranked among the top 5 global wearable brands by IDC for several quarters, capturing a 31% market share in the Indian wearables market and over 40% in the TWS category as of July 2022.
- Fastest Growing Company: Achieved a 76.6% year-over-year growth in Q2 2022.
- Innovative Product Launches: Includes advanced TWS earbuds, smartwatches with Bluetooth calling, and home audio systems.
- Recognition for Affordability and Functionality
- Strong Market Position: Established as a major player in the Indian market with significant growth and a robust omnichannel presence.
- Make in India Initiative: Committed to increasing local production, aiming to produce 6 million units in H1FY23 under the “Make in India” policy.
Recent News
boAt Eyes Strategic Fundraise and IPO in 12-18 Months Amid Push for Profitability by FY25
(June 2024) boAt’s parent company, Imagine Marketing, is in talks with three potential investors to raise strategic capital as the company prepares for an IPO in the next 12-18 months, aiming to raise INR 2,000 crore. Despite a net loss of INR 129.4 crore in FY23, due to investments in local manufacturing, boAt remains focused on turning profitable by FY25. The company became EBITDA profitable in FY24 and expects to achieve net profitability in the current fiscal year. Co-founder and CEO Sameer Mehta emphasized that the fundraising is driven by strategic interests rather than a pressing need for capital, and the IPO timeline will depend on improvements in financial metrics. This marks boAt’s second attempt at an IPO, following a shelved plan in 2022. The company is also focusing on specialized wearables to dominate the entry-price segment amid ongoing price wars in the wearables market.
boAt Launches Storm Call 3: India’s First Affordable Smartwatch with MapMyIndia Navigation
(April 2024) boAt has launched the Storm Call 3, India’s first smartwatch featuring MapMyIndia’s navigation system. Priced at INR 1,099, this affordable smartwatch offers turn-by-turn navigation powered by MapMyIndia, allowing users to receive precise directions without needing to check their smartphones. The Storm Call 3 is designed to operate independently, providing accurate navigation across thousands of cities and villages in India, setting a new standard for smartwatches in the country.
boAt Collaborates with Top Filmmakers to Launch Dolby Audio-Powered Airdopes 800
(May 2024) boAt has teamed up with renowned filmmakers Anurag Kashyap, Zoya Akhtar, Kabir Khan, and Guneet Monga to launch the Airdopes 800, its latest innovation powered by Dolby Audio. This collaboration merges cinema and sound, with each filmmaker offering unique insights into how the Airdopes 800 enhances their creative work. The Airdopes 800, designed for rich, immersive sound and comfort, aims to elevate the audio experience for movie and music enthusiasts alike.
IPO Plans
boAt In Talks to Raise Funds, Eyes IPO in the Next 12-18 Months
- Capital Raise: Imagine Marketing India, boAt’s parent company, is negotiating with three investors for a strategic capital raise.
- Investor Interests: Includes a large global fund, a sovereign fund, and one strategic investor.
- Current Focus: Improving financial metrics and achieving profitability by FY25.
- Profitability: Achieved EBITDA profitability in FY24, with plans to attain net profitability in FY25.
- IPO Plans: Planning to go public post-profitability in FY25, aiming to raise INR 2,000 crore via IPO.
Financial Highlights
₹ in crores
| Particulars | FY 2023 | FY 2022 | Increase(%) |
| Total Revenue | 3377 | 2873 | 0.17 |
| EBITDA | -81 | 130 | -1.6 |
| Profit After Tax | -130 | 69 | -2.88 |
| EPS | 13 | 5 | 1.6 |
- Increased Competition: Rising competition from domestic and international brands has impacted boAt’s market share and profit margins.
- High Operational Costs: Expansion efforts and “Make in India” initiatives, along with R&D investments, have increased operational expenses.
- Supply Chain Disruptions: Post-pandemic global supply chain issues have led to higher costs and delays in product availability.
- Economic Challenges: Inflation and shifts in consumer spending have negatively affected sales.
- Growth Investments: Heavy investments in new products and international expansion have strained short-term profitability.
Valuation
| Valuation | 31st March, 2023 |
|---|---|
| Share Price | 1415.00 |
| Outstanding Shares | 13.07 |
| Market Capitalization (MCAP) | 18499.04495 |
| Price-to-Earnings (P/E) Ratio | 108.85 |
| Price-to-Sales (P/S) Ratio | 5.48 |
| Price-to-Book (P/B) Ratio | 26.48 |
| Book Value per Share | 53.43 |
Shareholding Pattern
| Name | Shareholding % |
| AMAN GUPTA | 39.93 |
| SAMEER ASHOK MEHTA | 39.93 |
| SOUTH LAKE INVESTMENT LTD | 19.26 |
SWOT Analysis of boAt
Strengths:
- Market leader in India’s audio and wearable sectors.
- Strong brand recognition, particularly among youth.
- Affordable pricing combined with high-quality products.
- Regular innovation with advanced features.
Weaknesses:
- Heavy reliance on the Indian market.
- Limited product diversification, primarily focused on audio products.
Opportunities:
- Potential for expansion into global markets.
- Growing demand in the wearables sector.
- Opportunities to integrate AI and IoT into products.
Threats:
- Intense competition from both global and local brands.
- Vulnerability to economic downturns and shifts in consumer spending.
- Regulatory challenges associated with global expansion.
boAt’s Key Retail and E-commerce Partnerships
- Amazon: Strong presence on Amazon India, frequently ranking among the top-selling brands in the audio category.
- Flipkart: Prominent e-commerce partner with boAt products featured in major sales and promotions.
- Reliance Digital: Available in Reliance Digital stores across India.
- Croma: Partnership with Croma for offline retail distribution.
Key Investor
- Warburg Pincus: A leading global private equity firm that made a significant investment in boAt in 2021, contributing to the company’s growth and expansion.
- Fireside Ventures: An early-stage venture fund that supported boAt during its early growth phases.
- Qualcomm Ventures: The investment arm of Qualcomm, which invested in boAt to support technology and consumer electronics advancements.
boAt’s Funding and Acquisition Overview
boAt has secured a total of $177 million in funding across eight rounds. The latest funding round was completed on February 1, 2024. The company is supported by seven investors, with Ranveer Singh and Warburg Pincus being the most recent contributors.
In addition to its funding, boAt has acquired two organizations, with its most recent acquisition being KaHa Pte on January 15, 2022.
| Date of Funding | Funding Amount | Round Name | Post Money Valuation | Revenue Multiple | Investors |
| 28-Oct-22 | $61.6M | Series C | $1.32B | 3.9x | Warburg Pincus, Malabar Investments |
| 4/15/2021 | $6.65M | Series B | $256M | 1.4x | Qualcomm Ventures |
| 26-Dec-20 | $100M | Series B | $276M | 1.8x | southlakesinvestment.com, Warburg Pincus, Qualcomm Ventures |
Peer Competitors
These are the competitors of boAt : pTron, noise, Skullcandy, ZEBRONICS, ambrane.
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