Electronic goods firm boAt Lifestyle reported a $60 million (Rs 500 crore) funding round led by an angel investor, an associate of Warburg Pincus, with big investor Malabar Investment. The cash would be utilized to develop the company's smartwatch category and to create a domestic manufacturing environment.
According to media sources, the business has also canceled their Rs 2000 cr IPO plan, blaming turbulent market circumstances. boAt joins a number of other businesses, including FirstCry, Pharmeasy, and Droom Technologies, in postponing their public offerings this year. In February of this year, boAt launched its draft prospectus paper.
The firm has become one of the country's most successful direct-to-consumer brands, having leadership with in earphones market.
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"We now want to make smartwatches our second key product, and we will follow the boAt digital blueprint to become world leaders in this area as well. The additional finance will enable us to make considerable investments in order to challenge the smartwatches markets with more creative products. And we are delighted that investors continuing to hold a strong belief in the boAt narrative "Aman Gupta, Co-founder and Chief Marketing Officer, made the announcement in a statement.
In India, the wrist wearables sector has enormous promise. According to IDC estimates, it was extremely fast category as in wearables category for such April-June period, it shipping nearly quadrupling to 6.4 million devices from 1.6 million units with in previous quarter.
The business also stated that it is working to diversify its production base through relationships with different prominent electronics and semiconductor companies in India, like Dixon, with which it formed a partnership in January of this year.
According to the corporation, a major amount of boAt's goods now are made in India, with around a million pieces produced each month.
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