[Funding alert] Made in India brand boAt raises $100M from Warburg Pincus, plans to expand its product line

boAt, founded in 2016 by Aman Gupta and Sameer Mehta, has secured $100 million in PE funding from Warburg Pincus.

Speaking to YourStory, the founders said that this deal is significant in the D2C industry as it is one of the largest fundraises, which is testimony to the growth of the industry in India. 

"This raise will allow the company to focus on R&D, make in India, and create an ecosystem by working with local manufacturers. We will also ramp up our global supply chain by working with global manufacturers in the South East Asian region," said Aman. 

In FY 2020, boAt crossed Rs 500 crore in revenues and the startup is expected to double the number in FY2021.

Aman Gupta, Co-Founder, boAt added:

“This is a vote of confidence for our business model and growth prospects. The investment is great news for not only the company but also for the entire D2C sector.”

Sources say that this round will also offer great returns to early investors. However, they would not disclose if early investors would opt for a partial exit or a complete exit. 

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An early investor in boAt, Kanwaljit Singh, Founder and Managing Partner at Fireside Ventures, said,

“boAt has grown to become the market leader in the lifestyle accessories segment. It’s the perfect example of a consumer brand built successfully on quality, consumer insights, smart pricing, and focused marketing. Given our interest in the consumer brand category, we spotted and saw the prospects of a high-growth consumer startup addressing the audio needs of millennials and Gen Z.  An investment by Warburg Pincus is a testament to the long-term growth potential of India-made consumer startups.”

boAt has become a leading personal audio brand in India (headphones, earphones, sound-related accessories) with a rapidly emerging presence in adjacent consumer-focused and lifestyle electronics categories. Its product portfolio offers well-designed and distinctive products at affordable price points. 

The company has been profitable since its inception. 

boAt has also emerged as the 5th largest wearable brand globally, according to IDC data.

Sameer Mehta, Co-Founder, boAt commented: “As boAt enters the next phase of growth and innovation, we look forward to benefitting from Warburg’s pedigree, collective experience and resources in helping us scale.  Going forward, with the government’s support, we will focus on building capabilities in domestic R&D, and undertake vertical integration across both the hearable and wearable space to establish India as a global supplier.”

Vishal Mahadevia, Managing Director and Head, Warburg Pincus India, said: “We see a compelling growth story in boAt and believe the company is well-poised to build upon the strong leadership position it has carved out within the industry, and stands to benefit from the secular tailwinds of ecommerce growth in India.”

Avendus Capital was the financial advisor to boAt in this transaction.