The audio products and smartwatch maker boAt is gearing up for its initial public offering (IPO) in the fiscal year 2025-26 (FY26). The Aman Gupta-led company is reportedly set to file its draft red herring prospectus (DRHP) confidentially, with plans to raise INR 2,000 Cr (around $231 Mn), according to CNBC-TV18.

boAt’s Journey Towards IPO

This will be boAt’s second attempt to go public. The company initially filed for a INR 2,000 Cr IPO in 2022 and received SEBI’s approval in May of the same year. However, the startup decided to put its IPO plans on hold, with co-founder and Chief Marketing Officer (CMO) Aman Gupta stating in 2023 that boAt was in no hurry to go public for the “next couple of years.”

In June 2024, Sameer Mehta, co-founder and CEO of boAt, confirmed that the company would only proceed with its public listing once it achieved profitability in FY25.

Financial Performance & Market Position

Founded in 2016 by Sameer Mehta and Aman Gupta, boAt has established itself as a leading player in India’s audio and wearables market. The company offers a wide range of products, including smartwatches, headphones, wireless earbuds, speakers, and mobile accessories such as chargers, cables, and power banks.

Despite its strong brand presence, boAt reported a net loss of INR 79.7 Cr in FY24, an improvement from its INR 129.4 Cr loss in FY23. The company’s operating revenue declined by over 7% to INR 3,117.7 Cr in FY24 from INR 3,376.8 Cr in the previous fiscal year, largely due to weaker performance in its wearables category.

To date, boAt has raised more than $176 Mn in funding from investors, including Qualcomm Ventures and Warburg Pincus. The company is expected to target a valuation exceeding $1.5 Bn for its IPO.

The Broader Startup IPO Landscape

boAt’s move to go public aligns with the broader trend of tech startups listing on Indian stock exchanges. The Indian IPO market saw significant activity in 2024, with 13 startups making their stock market debut and raising a combined INR 29,070 Cr. The momentum is expected to continue in 2025, with over 20 new-age tech companies—including Razorpay, Zepto, Pine Labs, and IndiQube—gearing up for public offerings.

Additionally, the IPO boom has fueled the ‘reverse flip’ trend in the Indian startup ecosystem. Several companies that previously incorporated overseas are now relocating back to India to capitalize on favorable market conditions. Zepto, for instance, shifted its corporate headquarters back to India ahead of its $1 Bn IPO. Other startups like Eruditus, Razorpay, and Mensa Brands are also considering similar moves.

Challenges & Future Outlook

While the IPO market remains attractive, boAt and other startups face challenges, including fluctuating market conditions, profitability concerns, and regulatory scrutiny. Given boAt’s declining revenue and past financial struggles, investors will closely analyze its financial health before committing to its IPO.

Despite these challenges, boAt’s brand strength, innovative product lineup, and strong investor backing position it as a strong candidate for a successful public listing. If the company can achieve profitability as planned, its IPO could mark a significant milestone in India’s consumer electronics sector.