boAt sailing to an IPO πŸ€™

boAt sailing to an IPO πŸ€™

What happened β€” boAt, the homebrewed consumer electronics brands, filed its docs with SEBI to raise $266 million from public investors β€” at a $1.5 billion valuation, joining a sizzling roster of companies lining up for an early 2022 show!

boAt flipped atleast a dozen competitors to get into the top 5 wearables brands worldwide last year alongside Fitbit. Besides, it comes hot off of all the Shark Tank fame, so the timing couldn’t have been any better!

Last year, the business made $200-odd million in sales, 2x from the year before β€” owning a 30% share of the wearables market in India. The business is also profitable, pulling in ~$10-15 million in profits annually.

The market is shaping up nice too β€” a device-boom amidst COVID where everyone rushed to upgrade their hardware for work-from-home and other entertainment needs, coupled with the rise of digital commerce (boAt makes 80%+ of its revenues through online channels), offer strong tailwinds.

Anyway, IPO money will be put to close out any debt owed, and fuel growth.

Big picture β€” recognizable brand, profitable operation, capable leadership β€” little to complain about! However, its a hardware business with hardware-like margins β€” do expect investors to remain β€œmeasured”.