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

 

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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...

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