boAt raises USD 100 million in funding from Warburg Pincus

By Akshay Kedari  Date: 2021-01-07

boAt raises USD 100 million in funding from Warburg Pincus

Indian consumer electronics brand, boAt, has reportedly secured funding of USD 100 million from Warburg Pincus, a New-York-based private equity firm, at a USD 300 million valuation.

The company will utilize these funds to expand its product portfolio, boost its research & development, and gear up its manufacturing capabilities in India, claimed sources familiar with the matter.

Aman Gupta, a co-founder of boAt, reportedly stated that this investment is good news for both the D2C (direct-to-consumer) sector as well as the company itself. He also expressed that the timing of the investment since the company is currently focusing on expanding its manufacturing and global supply chain.

Meanwhile, another co-founder of boAt, Sameer Mehta, mentioned that most of the electronic components used in their products are not made in India and are manufactured in Taiwan and China. He further added that although they are behind China in terms of mechanicals, however, the fresh investment will allow the company to expand its manufacturing capabilities in India.

Mehta further claimed that with the government’s support, the company would concentrate on improving its capabilities in domestic R&D and pursue vertical integration in both the audible and wearable space.

Trusted sources claimed that boAt R&D team in Bengaluru currently consists of 30-35 members and is setting up an additional lab in order to reduce its dependency on outside product designers.

Through this newly secured investment, Warburg Pincus will enter the growing audio and wearables industry in India. In this regard, Vishal Mahadevia, MD and head, Warburg Pincus India, stated that the firm has witnessed growth potential in boAt and is likely to maintain the strong leadership position it has carved out within the market.

It is also worth mentioning that Fireside Ventures has already allocated approximately USD 2.8 million in boAt to date.

Source Credits –

https://www.livemint.com/companies/start-ups/warburg-invests-100-mn-in-boat-11609892306989.html

 

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Square to acquire installment payment firm Afterpay for USD 29 Bn

Square to acquire installment payment firm Afterpay for USD 29 Bn

By Akshay Kedari

With the increasing competition in the buy now pay later (BNPL) arena for U.S. consumers, digital payments firm Square Inc. recently announced its plans of acquiring BNPL company Afterpay Ltd. in an all-stock deal valued at USD 29 billion. The San F...

Hyundai Motor, LG Energy Solution to launch battery plant in Indonesia

Hyundai Motor, LG Energy Solution to launch battery plant in Indonesia

By Akshay Kedari

This new battery production plant will be built in the Karwang Regency. It will reportedly have a yearly output of around 10 gigawatt-hours of batteries. South Korean multinational conglomerates Hyundai Motor Company and LG Energy Solution Ltd. ...

Amazon’s ‘Key for Business’ raises security concerns for U.S apartments

Amazon’s ‘Key for Business’ raises security concerns for U.S apartments

By Akshay Kedari

American technology and e-commerce giant, Amazon.com Inc. has reportedly been using ‘Key for Business’- a system that enables the company’s delivery agents to gain access to apartment complexes without requiring to be buzzed in by r...

Volvo Cars might take full control of its Chinese stake ahead of IPO

Volvo Cars might take full control of its Chinese stake ahead of IPO

By Akshay Kedari

Swedish luxury automobile manufacturer Volvo Cars Corporation reportedly signed an agreement with Zhejiang Geely Holding Group to buy out from their decade-long joint ventures to gain complete ownership of its facilities in China. According to relia...

Lamborghini expects sale volumes to hit record highs in India this year

Lamborghini expects sale volumes to hit record highs in India this year

By Akshay Kedari

Italian luxury sports car manufacturer, Automobili Lamborghini S.p.A. is reportedly expecting substantial growth in sales volumes in India this year as the carmaker is experiencing a V-shaped upturn in demand after the easing out of COVID-19 pandemic...