Boat Shareholders Breakdown & Funding Valuation – 2023

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.

Shareholders Breakdown

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.

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.

(Note: boAt is not the only one to raise funds through convertible notes! Udaan, Byju’s, and PharmEasy are some of the key players too.) 

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.

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. –

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. 

Revenue Earned

BoAt earned revenue from the following sources-

Expenses

Now look at the following expenses that led to the profits for the company “BoAT.”

Final Thoughts

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.