boAt Raises $100 Mn From Warburg Pincus
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Indian electronics and lifestyle startup boAt on Wednesday announced to have raised approximately $100 million from private equity fund Warburg Pincus.
This investment is believed to be a landmark deal for the direct-to-consumer (D2C) industry in India as it endorses the sector’s coming of age with consumers trusting and gravitating towards brands launched online.
“We welcome Warburg Pincus as a new investor into the company. This is a vote of confidence for our business model and growth prospects. The investment is great news for not only the company but for the entire D2C sector. The investment has come at the right time as we make efforts to ramp up our manufacturing and global supply chain,” said Aman Gupta, co-founder, boAt, while commenting on the transaction.
The homegrown brand has said to have to solidify its position in the global market as the fifth largest wearable brand, according to IDC data.
“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 research and development (R& D) and undertake vertical integration across both the hearable and wearable space to establish India as a global supplier,” shared Sameer Mehta, co-founder, boAt.
The investment by Warburg Pincus will enable the company to further strengthen its market position, widen its R&D capabilities and product portfolio, and build on the firm’s efforts to create and support a manufacturing ecosystem under the Make-in-India initiative, enabling the manufacture of products in India.
“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 e-commerce growth in India. Warburg Pincus is excited to partner with the management team of boAt led by Aman and Sameer in this journey and we look forward to supporting them through the next phase of the company’s growth,” added Vishal Mahadevia, managing director and head, Warburg Pincus India.
Avendus Capital acted as the exclusive financial advisor to the company and its shareholders on the transaction.
Launched in 2016, the startup continues to achieve rapid revenue growth of over 100 per cent over the past several years.