boAt delays IPO plans, Raises INR 500 cr via preference shares
Imagine Marketing Pvt. Ltd, which operates audio gear and wearables brand boAt, is raising around $60 million ( ₹500 crore) in a fresh round of equity funding led by its existing backer Warburg Pincus and new investor Malabar Investments. The company has withdrawn its listing plans due to concerns related to market conditions.
Warburg Pincus has participated in this round through one of its affiliates South lake Investment. The company will secure this growth capital in as private placement through preference shares.
Sameer Mehta, cofounder and chief product officer of boAt, added that the D2C brand is driving R&D with boAt labs, a 120-person in-house team, and its acquisitions of KaHa Technologies.
“These products will provide richer features and deeper insights to consumers on their health and wellness, enabling them to lead more active and fulfilling lifestyles,” Mehta added.
The transaction will value the company around $1.4 billion, the same which it was likely to seek during its IPO.
“We now want to make smartwatches our second core and will replicate the boAt digital playbook to become global leaders in this category as well. The new funding will allow us to invest significantly to disrupt the smart watches spaces with more innovative products, We are doing well. We have invested in a lot of wearables [technology] and in the next year, we will be focussing more on the category” said Aman Gupta, co-founder and chief marketing officer at boAt.
