boAt, the popular audio and wearables brand, is not planning to go public this year and is instead eyeing the timeframe of fiscal year 2025 to 2026 for its initial public offering (IPO), said the co-founder Aman Gupta.
In an interview with PTI, Gupta stated that the company is not in a rush to list and is currently well capitalised.
Gupta explained that there was a period when startup IPOs were in vogue, but market volatility changed the scenario. He emphasised that boAt does not have an immediate need to go public and could consider an IPO in a few years. He confirmed that boAt listing would not happen this year.
"We don't need to go for an IPO, as such. We can do that after a few years also... So, maybe FY25-FY26 is what we're looking... We're not in a hurry to list," Gupta said.
Gupta, who gained recognition through his participation in Shark Tank India, was recently part of an official delegation during Prime Minister Narendra Modi's visit to Paris. At the Indo-French CEO Forum, he highlighted the growth of entrepreneurship in India and shared boAt's success story as evidence of the immense opportunities in the country.
Regarding the possibility of raising more capital before going public, Gupta said that while the startup is not currently in need of funds, the decision will depend on the company’s growth aspirations and market conditions. He acknowledged that they may consider additional fundraising based on their position and ambition but emphasised that boAt is currently well funded.
"We might look at it depending on where we are, and where our ambitions are... Never say never, but it is not like we need funds," he said.
Last year, Imagine Marketing, the parent company of boAt, raised Rs 500 crore through funding from existing shareholder Warburg Pincus and new investor Malabar Investments. The funds were intended to support boAt's expansion into the fast-growing smartwatches segment while further solidifying its position in the personal audio market.
Gupta stressed that boAt is adequately funded and well capitalised at present. He mentioned that if additional funds become available, the company would not decline the opportunity, but it is not a pressing requirement.
Gupta also explained that listing on the stock market is necessary for startups to provide an exit to early investors. He emphasised that it is not a matter of choice but rather a fiduciary duty towards investors. The timing of the IPO depends on when the company deems it appropriate.
"Listing for a startup is not a question because if you have raised funds you have to give an exit (to investors) because everybody comes with fiduciary duty towards their investors... So, we have to do a listing, it is not about choice. It's just about when," he said.
Previously, boAt had filed a draft prospectus with the Securities and Exchange Board of India (SEBI) for a Rs 2,000 crore IPO but subsequently withdrew it proactively.
Last year, when announcing the funding, Gupta mentioned boAt's strong presence in the personal audio category and its goal of becoming a global leader in the smartwatches segment. The funding was expected to facilitate the development of innovative products in the smartwatches space.
boAt achieved a significant milestone with net sales of Rs 4,000 crore in the fiscal year 2022-2023. The company has made substantial investments in the Indian manufacturing ecosystem, with the majority of its audio and wearables products now being manufactured in India through partnerships with electronic manufacturing services (EMS) players, including Dixon, with whom boAt has a manufacturing joint venture.