India’s homegrown brand BoAt, known for its personal audio equipment, announced today that it has received nearly $100 million (Rs. 731 crores) from a subsidiary of Warburg Pincus, a leading global private equity fund focused on growth investments. This was done after the company received $60 million (Rs 440 crore) in funding from South Lake Investment. boAt’s post-monetary valuation is estimated at more than $300 million (Rs. 2,192 crore).
BoAt stated that it is still experiencing rapid revenue growth (more than 100% in recent years) and has a strong yield profile. The company was recently ranked as the 5th largest wearable accessories brand in the world, according to IDC data for the third quarter of 2020.
Warburg Pincus’ investment will enable the company to strengthen its market leadership position, expand its R&D capabilities and product portfolio, and build on BoAt’s efforts to create and maintain a production ecosystem that enables production in India through the Make in India initiative.
The secret sauce with boAt is that they have managed to capture a huge user base in India with their affordable pricing and making the accessories aesthetically appealing. With this investment, boAt can expand its horizon in India and offer more innovative products at a budget price.
