Flush With Funds, No IPO Plans For At Least A Couple Of Years: Aman Gupta
The co-founder of boAt stated that although the direct-to-consumer electronics brand intends to be listed on the stock exchange in India, there are no immediate intentions to do so within the following few years.
boAt submitted its initial paperwork (DRHP) in January of the previous year for a public offering worth INR 2,000 Cr.
Nevertheless, the company postponed its initial public offering (IPO) intentions following the acquisition of funding from Warburg Pincus and Malabar in October of the previous year.
After receiving INR 500 Cr from Warburg Pincus and Malabar Investments in October of last year, boAt, the prominent Indian direct-to-consumer electronics company, has no urgency to pursue an initial public offering (IPO), as stated by Aman Gupta, co-founder and chief marketing officer (CMO).
According to Gupta, the direct-to-consumer electronics brand intends to be publicly listed in India; however, it does not currently have any intentions of doing so within the next few years, as it has already obtained the necessary funds.
"We don't feel any immediate pressure to pursue an IPO. Initially, we had made plans to go public next year, but subsequent to that, we secured additional funding. Originally, we had intended to raise INR 500-900 Cr through the primary offering of the IPO, but we managed to secure funds from Warburg. As a result, we are adequately financed for the next two to three years," Gupta stated during his speech at Inc42's 'The D2C Summit 4.0'.
"We might consider the possibility of going public in the upcoming year," Gupta appended.
By the way, boAt submitted its preliminary IPO documents, known as draft red herring prospectus (DRHP), in January of the previous year, seeking to raise INR 2,000 crore from the public. The Securities and Exchange Board of India (SEBI) approved the initial public offering in May 2022 and it was widely anticipated that boAt, under the leadership of Aman Gupta and Sameer Mehta, would make its debut on the stock market by the conclusion of the year.
According to the IPO paperwork, both creators possessed 28.26% of the total equity shares, granting them authority over the organization. Nevertheless, the ownership arrangement in the company could have altered with Warburg and Malabar Investments joining the scene.
Significantly, the year 2022 proved to be challenging for the stocks of technology startup companies on the stock exchanges. The companies that went public in 2021 experienced a complete collapse in their stock prices throughout the year. Renowned entities such as Paytm and Zomato, along with various others, reached unprecedentedly low levels on the stock market. As a result, numerous startups, including boAt, decided to postpone their initial public offering (IPO) schemes.
Expressing his future goals, the Shark Tank panelist shared that the direct-to-consumer brand aims to increase its earnings to INR 10,000 Crores over the next two to three years. Currently, the company is engaged in creating a strategic plan to achieve this objective.
"At The D2C Summit 4.0, Gupta shared that our revenue for this year (FY23) reached INR 4,000 Cr, and we are projected to reach INR 5,000 Cr in the following year (FY24). Although we have yet to strategize for the subsequent year, our goal is to become an INR 10,000 Cr company within the next two to three years."
