boAt is a revolutionary lifestyle audio brand in India. This brand offers an incredible range of wireless earphones, earbuds, headphones, etc. Apart from that, you also get various electronic wearable devices like smartwatches and smart bands at affordable prices. Although its revenue doubled, its profits shrank in FY 22. But it didn’t lose its spot of being the most popular audio brand in India. According to the latest reports, its market valuation is Rs.9,840 crore. In this article, we will delve into boAt shareholders breakdown & funding valuation.
As of now, boAt has undergone 7 funding rounds. Their latest funding was raised in Oct 2022. And that too from a convertible note round. It is a short-term debt with an investment tool. You can consider it like a special short-term loan. Some of the major shareholders are South Lake, Aman Gupta, etc. You can have a quick look at the recent shareholding structure of boAt.
|Shareholder’s Name||Percentage of Shares Owned|
Fundings so far & Valuation
Did you know that this D2C audio brand got massive funding from Warburg Pincus and Malabar Investments in October 2022? This financing was done through convertible preferred stock notes for existing investor Warburg Pincus and new investor Malabar Investments. Thus, whenever boAt will close its next round for funding or IPO, the convertible fund round will come into play. The investment fund giants Warburg and Malabar will get these preferred stocks converted into equity. The business valuation will be worth over $1.2 billion.
The matured startups are using convertible notes to raise capital without compromising on their valuation. It is useful, especially in the funding winter of Indian startups.
|Venture Capitalist||Funding Amount (in crores)|
|Qualcomm Ventures||Rs.50 crore|
|Warburg Pincus||Rs.820 crore|
|InnoVen Capital||Rs.25 crore + Rs.16 crore|
|Navi Technologies||Rs.20 crore|
|Fireside Ventures||Rs.6 crore|
Is BoAt Profitable?
Profitability is a matter of concern especially when most of the startups are tackling the funding winter and booming losses. Don’t you wonder whether boAt is profitable or not despite being valued at Rs.9,840 crore?
Here’s a quick look at boAt’s financials which tells its profitability story. –
|BoAt’s Financials||Amount (in crores)|
|Market Valuation||Rs.9,840 crore|
|Revenue Earned||Rs.2,873 crore|
|Profit/Loss||Profit of Rs.68.7 crore|
So, here is your answer- “boAT was profitable in FY22 with profits worth Rs.68.7 crore.” But last year boAt’s profits were Rs.86.5 crore. Its profits dipped to 20.6% from FY21 to FY22. Though it efficiently managed to keep its cash outflow lower than the amount of revenue earned.
BoAt earned revenue from the following sources-
|Revenue Sources||Amount Earned|
|Sale of Audio Devices||Rs.2,276 crore|
|Sale of Wearable||Rs.515.5 crore|
|Other Operating Income||Rs.81.5 crore|
Now look at the following expenses that led to the profits for the company “BoAT.”
|Cost of Materials Consumed||Rs.2,346 crore|
|Warranty Claim Expenses||Rs.136.60 crore|
|Advertising & Promotional Expenses||Rs.99 crore|
|Employee Benefits Expenses||Rs.56.12 crore|
|Freight & Transportation Charges||Rs.43.32 crore|
|Other Expenses||Rs.105.36 crore|
BoAt gained a significant amount of funding from various venture capitalists like Qualcomm Ventures, Warburg Pincus, etc. boAt shareholders include six major names including the founder (Aman Gupta). Also, it earned a good amount of revenue that was conferred in its profits. Now it is planning to launch new audio products with Qualcomm chipsets. It is looking to raise the company’s local manufacturing and R&D capacity in India. It massively invested in the creation of its own in-house boAt lab. All these efforts will help it to scale up its channels in India as well as abroad.