Consumer electronics startup boAt said on Wednesday that it has secured Rs 20 crore in venture debt from Flipkart Co-founder Sachin Bansal’s BAC Acquisitions. The startup said it will be using the funding for business operations.
According to the company, the brand sells over 8,000 units per day, and an average five units every minute.
The Delhi-based startup, which sells earphones, headphones, speakers, travel chargers, and premium rugged cables, claims to have registered Rs 100 crore in gross sales in FY18, and is eyeing Rs 500 crore in the next couple of years.
Commenting on the fundraise, Aman Gupta, Co-founder of boAt said,
“Venture Debt definitely helps us keep the capital structure intact. boAt’s financial performance has been strong since inception. Our efficient and lean business model coupled with targeted business insights has allowed the brand to enjoy logical margins so that we can earn money and not burn money.”
Founded by Aman Gupta and Sameer Mehta in 2016, boAt has grown to a 45 member team. The company has offices in Delhi and Mumbai. Its products are made through contract manufacturing in India and China. The products are available both online (Amazon, Flipkart, Myntra, Snapdeal, etc.) and offline (Croma Retail, Vijay Sales, Poorvika Mobiles, etc.)
In an earlier conversation with YourStory, Aman had said: “We operate under the FMCG category. Our products have consistently performed well due to the importance of quality and marketing. Our competitive advantage lies in our focus on consumer needs, desires and behaviour patterns.”
In May 2018, boAt raised Rs 6 crore in its first round of funding from Fireside Ventures, an early-stage VC firm that backs consumer brands.
At the time, Kanwaljit Singh, Managing Partner, Fireside Ventures, said,
“(boAt) is one of the strongest brands in our portfolio. We strongly believe that it has all the right mix to scale and become a household brand in the coming years.”
(Edited by Megha Reddy)
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