A source, familiar with the deal details, pegged boAt’s valuation at around ₹1,600- 1,800 crore. Fireside Ventures, an early-stage investor that chipped in ₹6 crore in 2018, sold part of its holding, a senior company executive said.
The company will use the capital to invest in R&D and to set up local manufacturing, said Aman Gupta, co-founder and CMO, boAt.
Gupta, who worked with Harman International as director-sales at the US subsidiary of the Samsung Group, founded boAt in 2016 along with entrepreneur Sameer Mehta. The company posted earnings before interest, tax, depreciation and amortisation (Ebitda) of ₹50 crore in the previous financial year, Gupta said, on net sales of ₹700 crore.
The company, which sells headphones, earphones and sound-related accessories, said it will grow at 40% by the end of the ongoing financial year.
It has an 18% share in the True Wireless Stereo (TWS) market in India, according to Counterpoint Research data, where competitor TWS brands range from Mi (16% market share), Realme (12%), JBL (8%) and Apple (6%).
“We will undertake vertical integration across both the hearable and wearable space to establish India as a global supplier,” cofounder Mehta said.
Warburg Pincus’s investment will help the company further fortify its leading market position, invest in widening its R&D capabilities and product portfolio, and build on efforts to create and support a manufacturing ecosystem under the Make-in-India initiative, the company said.