boAt - How the Brand Engages Customers and Resets Minds

boAt - How the Brand Engages Customers and Resets Minds
boAt - How the Brand Engages Customers and Resets Minds

In the realm of portable audio solutions, headphones and earphones have become essential for music enthusiasts on the go. Due to consumer desire for portable, easy to transport electronics, companies like boAt a prominent participant in the market have grown to prominence.

Since its founding in 2016, boAt has quickly become India's leading earphone brand. boAt is well-known for its innovative designs, high quality, and reasonable prices. It provides a wide selection of wireless speakers, earbuds, headphones, and earphones. This brand gives customers everything they need in terms of portability while also adding a special touch of character and vitality to their audio experience.

In this article, we will delve into the successful journey of boAt, its founder, business model, funding, competitors, and more.

boAt - Company Highlights

STARTUP NAME BOAT LIFESTYLE
Headquarters Gurgaon, Haryana, India
Sector Consumer Electronics
Founder Sameer Mehta, Aman Gupta
Founded 2016
Website boat-lifestyle.com

boAt - About
boAt - Industry
boAt - Founders and Team
boAt - Startup Story
boAt - Shareholding
boAt - Name, Tagline, and Logo
boAt - Business Model
boAt - Revenue Model
boAT - ESOP
boAt - Challenges Faced
boAt - Funding and Investors
boAt - Acquisitions
boAt - Growth
boAT - Products
boAT - Partnerships
boAT - Advertisment and Campaign
boAt - Awards and Achievements
boAt - Competitors
boAt - Future Plans

boAt - About

boAt, an Indian powerhouse in the tech industry, specializes in marketing an impressive array of audio-centric electronic gadgets. boAt offers a wide range of products to meet the various demands of music lovers, including wired and wireless headphones and earphones, as well as stylish earbuds called Airdopes.

The business expands its product line beyond personal audio devices to include high-end tough cables, home audio equipment, and an alluring assortment of additional tech accessories. boAt has made a name for itself as the brand to turn to when looking for premium audio solutions that also feature creative design and high-caliber craftsmanship.

boAt - Industry

boAt thrives in the vibrant and ever-evolving consumer electronics industry, which holds a pivotal role in India's growing technological landscape. This industry has experienced remarkable growth, fueled by the increasing demand for electronic devices and gadgets. With its prominent presence, boAt stands at the forefront of this dynamic market, poised to meet the changing preferences of tech enthusiasts and tech-savvy consumers alike.

According to a Statista analysis, the Indian consumer electronics industry is expected to generate US $73.0 billion in revenue in 2024, growing at a rate of 6.06% per year (CAGR 2024 - 2028). This highlighted the noteworthy growth and economic prospects within the Indian consumer electronics industry throughout that time frame.

boAt - Founders and Team

Sameer Mehta and Aman Gupta are the co-founders of boAt.

Sameer Mehta

Sameer Mehta, Co-founder and Chief Product Officer, boAt
Sameer Mehta, Co-founder and Chief Product Officer, boAt

Sameer Mehta is the co-founder and Chief Product Officer (CPO) of boAt. He is also the Executive Director of Kores (India). Sameer Mehta started his career at Redwood Interactive and was the owner of the company. Mehta completed his schooling at St. Xavier School, Mumbai, and pursued his bachelor's degree in commerce from Narsee Monjee College of Commerce and Economics. Sameer also co-founded Imagine Marketing Pvt. Ltd., the parent company of boAt.

Aman Gupta

Aman Gupta, Co-founder and Chief Marketing Officer, boAt
Aman Gupta, Co-founder and Chief Marketing Officer, boAt

Aman Gupta is the co-founder and Chief Marketing Officer (CMO) of boAt. He pursued his bachelor's degree in commerce from Delhi University, after which he joined the Institute of Chartered Accountants of India. Gupta also pursued an MBA in Finance and Strategy at the Indian School of Business and an MBA in General Management and Marketing as an exchange student at the Kellogg School of Management at Northwestern University.

He started working as an Assistant Manager at Citibank and later worked as the co-founder and CEO of Advanced Telemedia Pvt. Ltd. Aman then joined KPMG as a Senior Management Consultant. He also worked as a Sales Director at HARMAN International. Aman Gupta ultimately co-founded boAt in 2016 with Sameer.

He also co-founded Imagine Marketing India, which became the parent company of boAt. Aman Gupta served as a judge during Season 1, Season 2, and Season 3 of Shark Tank and is also the first entrepreneur to walk the red carpet at Cannes in 2023.

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boAt - Startup Story

Aman Gupta's extraordinary journey from his birth and upbringing in Delhi to founding the immensely popular lifestyle audio brand boAt is a testament to his tenacity and entrepreneurial spirit. Initially urged by his father to pursue a career as a chartered accountant, Aman harbored a strong ambition to start his own business. Before achieving success with boAt, he ventured into five other businesses, all of which faced failure.

The turning point in Aman's entrepreneurial career occurred when he founded boAt at the age of 36, driven by his passion to create a lifestyle brand catering to the preferences of millennials. Reflecting on past mistakes, he identified a recurring pattern of concentrating solely on starting businesses without considering other crucial factors.

boAt began as a bootstrapped firm, with the founders contributing an initial capital of about Rs 30 lakh. Initially focused on manufacturing and selling cables, the company quickly evolved its trajectory. Aiming to deliver stylish audio products and accessories, boAt successfully tapped into the millennial market.

By 2020, boAt's product categories had expanded to serve over 800,000 clients, a remarkable accomplishment considering its humble beginnings. Aman Gupta's perseverance and commitment to learning from the past have played a crucial role in transforming boAt into the prosperous success story it is today.


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boAt - Shareholding

As of January 2022, the shareholding pattern of boAt, based on information from Entrackr, indicates the following distribution:

Shareholders Percentage
Warburg Pincus 36.48%
Aman Gupta (Co-founder) 28.26%
Sameer Mehta (Co-founder) 28.26%
Fireside Ventures 3.76%
Qualcomm Ventures 2.6%
Others 0.64%
boAt Logo
boAt Logo

The amazing success of boAt in the audio technology business is attributed to the strategic foundation set by Imagine Marketing India, the parent company of boAt, at its founding in 2014.

boAt - Business Model

boAt operates on an agile business model, prioritizing a keen understanding of consumer needs, desires, and behavior patterns. Its capacity to quickly adjust and respond in real time to give customers exactly what they want gives it a considerable competitive advantage.

The company's dynamic product expansion, which offers technological solutions in line with changing customer demands and consumption patterns, demonstrates its dedication to ongoing innovation.

boAt uses a multi-channel distribution approach, being active on online marketplaces like Amazon and Flipkart as well as physical storefronts. The brand is also aggressively growing its offline presence. This omnichannel strategy contributes to the overall expansion and market reach of the brand while guaranteeing accessibility for customers with a range of buying preferences.


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boAt - Revenue Model

boAt generates revenue through various channels, including:

Product Sales:

  • Online Channels: Establishing a robust online presence, boAt selectively sells audio items on platforms like Amazon, Flipkart, and others.
  • Offline Retail Stores: Expanding into physical retail locations, boAt forms alliances with consumer electronics and multi-brand retailers.

Additional Revenue from Operations:

  • After-Sales Services: Offering warranty services enhances client satisfaction and encourages recurring business.
  • Licensing & Brand Partnerships: Collaborating with influencers and companies, boAt creates co-branded products, leveraging their notoriety for joint sales and exclusive releases.

Promotion and Advertising:

  • boAt invests in marketing and advertising to build brand awareness, utilizing various platforms for a wider audience reach. These efforts contribute to product visibility and customer acquisition, further enhancing revenue streams.

boAT - ESOP

According to regulatory filings, the boAt board approved a special resolution to grant its employees 9,55,523 Employee Stock Options (ESOPs) valued at around Rs 72 crore (almost $9 million) on October 17, 2023. As per the filing, these ESOPs were intended to be converted into equity shares, aligning with the goal of promoting employee ownership and attracting, retaining, motivating, and rewarding key personnel in line with business growth. This strategic decision demonstrated boAt's commitment to both its personnel and its long-term growth ambitions in the tech sector.

boAt - Challenges Faced

In its early stages, boAt faced formidable challenges, especially in convincing Chinese contract manufacturers to produce in small quantities. A crucial juncture arose as the dedicated boAt team, immersed in product and packaging design, implored manufacturers with a commitment for larger orders in the future: "Please support us now, we will order more later."

The logistical intricacies unfolded as products were shipped to the Indian company, maintaining minimal inventory, and Amazon took charge of distribution. Prior to the official launch of its brand in 2016, boAt served as a distributor for the international audio brand House of Marley from 2014 to 2016. boAt's early narrative was defined by bootstrap funding, approximately Rs 30 lakh from the founders, and the resilience to surmount financial challenges.

Even with such modest beginnings, boAt faced enduring difficulties in the fiercely competitive business. The business negotiated the challenging terrain of producing fashionable goods at reasonable prices, a challenge made more difficult by a market full with equally skilled rivals.

boat's dedication to conquering challenges and providing cutting-edge audio solutions has been important in forming its success story in the tech sector as it carved out its place.

boAt - Funding and Investors

boAt has raised a total amount of $177 million in funding over 7 funding rounds.

Date Transaction Name Amount Lead Investor
October 28, 2022 Convertible Note - boAt $60 million -
April 16, 2021 Series B Rs 50 crore Qualcomm Ventures
January 5, 2021 Series B $100 million Warburg Pincus
September 1, 2020 Debt Financing $3.34 million InnoVen Capital
July 26, 2019 Debt Financing $2.3 million InnoVen Capital
July 17, 2019 Debt Financing Rs 20 crore Navi Technologies
May 3, 2018 Venture Round Rs 6 crore Fireside Ventures

boAt - Acquisitions

boAt has acquired two companies to date: KaHa Pte on January 15, 2022, and TAGG on June 9, 2021. These strategic acquisitions reinforce boAt's commitment to innovation and market expansion in the audio technology sector.

boAt - Growth

boAt has experienced phenomenal growth by strategically placing its products in leading retail outlets, including Croma, Myntra, Amazon, Paytm, and Flipkart. The remarkable growth of the brand is evidence of the reliable, high-caliber performance of boAt products, drawing in a large consumer base.

By emphasizing innovation and flexibility in response to customer demands, boAt has become a prominent player in the audio technology sector, attaining notable accomplishments and acknowledgment within the industry.

Here's a quick glance at some of the most prominent growth milestones of boAt:

  • boAt has gathered 800,000+ customers within a short span of 4 years as of July 2022.
  • It claims to add one boAthead to its family within every 3 minutes that pass, as per reporting of July 2022.
  • The company sells four units every minute and over 6,000 units each day as of May 2022.
  • It is the 5th largest wearables brand globally, as per news report of December, 2020.

Financials

boAT Financials
boAT Financials
boAt Financials FY20 FY21 FY22 FY23
Operating Revenue Rs 700 crore Rs 1,314 crore Rs 2,873 crore Rs 3,377 crore
Total Expenses Rs 637 crore Rs 1,202 crore Rs 2,787 crore -
Profit/Loss Profit of Rs 48.86 crore Profit of Rs 86.5crore Profit of Rs 68.7 crore Loss of Rs 129.4 crore
Cash from Operations Surplus of Rs 0.82 crore Deficit of Rs 142 crore Deficit of Rs 368.7 crore -

Expenses Breakdown

Company expenses for FY21 were Rs 1,202 crore in total, and in FY22 it was Rs 2,787 crore.

Below are the expenses breakdown:

Expenses Breakdown FY21-FY22 FY21 FY22
Cost of materials consumed Rs 1020.84 crore Rs 2346.6 crore
Warranty claim expenses Rs 52.7 crore Rs 136.60 crore
Advertising and promotional expenses Rs 47.86 crore Rs 99 crore
Employee benefit expenses Rs 14.92 crore Rs 56.12 crore
Freight and transportation charges Rs 21.75 crore Rs 43.32 crore
Others expenses Rs 43.93 crore Rs 105.36 crore

EBITDA

boAT FY21-FY22 FY21 FY22
EBITDA Margin 10.10% 4.96%
Expense/Rs of Operation Revenue Rs 0.91 Rs 0.97
ROCE 27.57% 19.86%

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boAT - Products

boAT has launched various products. Some of the prominent products are:

Stream Edition

boAt launched stream edition audio products including a neckband, headphones and TWS earbuds in India in partnership with Netflix in December, 2022.

StanceOS

boAt, and StanceBeam, a leading sports technology start-up in April, 2023, have joined forces to offer StanceOS, which includes advanced smart sensors and sports motion detecting AI technology in smartwatches.

Dolby-powered neckband

The Nirvana 525 ANC was formally introduced by boAt and Dolby in June, 2023.

Kids Wireless headphones

Rockid Rush, a line of wireless Bluetooth headphones for kids, has been introduced by boAT in August 2023, expanding its line of products. The 10-hour battery life, 30-mm drivers, and 85 dB sound limit of the limited-edition Bluetooth headphones are included.

Airdopes

As a new addition to the Airdopes series, boAt has introduced the Airdopes Flex 454 ANC in India in September, 2023. These cost less than Rs 2,000 and have ANC, up to 60 hours of playback time, and other capabilities.

boAT - Partnerships

boAT has partnerships with many companies. Some of the most prominent partnerships are:

Netflix

boAt partnered with Netflix in December 2022, and through this collaboration, boAt announced that it would launch True Wireless Earbuds (TWS), On-Ear Headphones, and Wireless Neckband.

boAT partnership with IPL team

boAt agreed to become the official audio and wearable partner of three Indian Premier League (IPL) clubs, including Gujarat Titans (GT) and Royal Challengers Bangalore (RCB) in March 2023.

The company stated in a press release that it also extended its relationship with the Kolkata Knight Riders (KKR) and continued to serve as the team's official audio partner throughout the IPL's 16th season.

ONDC Partnership through Shopalyst's Plugin

boAt and Shopalyst teamed up to make their product catalog searchable on the Open Network For Digital Commerce (ONDC). Through this partnership, boAt aimed to create multiple consumer touchpoints in May 2023.

Reliance Digital

boAt partnered with Reliance Digital in September 2023, and through this collaboration, they planned to introduce 3D hologram projections as part of an exciting retail experience featuring the boAt Smart Ring.

boAT - Advertisment and Campaign

boAT Campaign

360-degree campaign

boAt enlisted a star-studded lineup, including actor Kiara Advani, cricketer Shreyas Iyer, fashion designer Masaba Gupta, and co-founder Aman Gupta, for their comprehensive 360-degree campaign.

The ad, which was released to mark the audio line's launch, masterfully conveys how Indians value their freedom to watch movies and TV shows whenever it suits them. This celebrity-studded commercial demonstrates the brand's dedication to providing a captivating and entertaining auditory experience.

boAt - Awards and Achievements

boAt has been awarded and recognized on numerous occasions by a list of organizations. Here's a look at some of the most prominent awards and achievements of the brand:

  • Aman Gupta, the Chief Marketing Officer and co-founder of boAt, was named the e4m D2C Tycoon of the Year 2023.
  • He was recognized as the Entrepreneur of the Year in 2020 and included in the list of 40 Under 40 Achievers by Businessworld.
  • Aman Gupta received the Businessworld Young Entrepreneur award in 2019.

In terms of boAt's achievements:

  • In Q3 of CY21, boAt became the "Number 1 brand for truly wireless and earwear in India.".
  • The company was recognized as the "5th largest wearable brand in the world in 2020."
  • boAt served as the official audio partner for six Indian Premier League (IPL) teams in 2021.
  • In the 16th season of the IPL, boAt became the official wearable partner for RCB and GT and the official audio partner for KKR.
  • Celebrities and cricket players that the brand has partnered with include Hardik Pandya, Diljit Dosanjh, and Kiara Advani.

boAt - Competitors

The top competitors of the boAt are Noise, Mivi, and Skullcandy.

Noise

Gonoise is one of the biggest rivals of boAt. It is headquartered in Gurgaon, Haryana, India and was founded in 2014. Noise competes in the electronic equipment industry.

Mivi

Mivi is another rival of boAt. It is headquartered in Telangana, Andhra Pradesh, India and was founded in 2015. Mivi also operates in the electronic equipment industry.

Skullcandy

Skullcandy is also one of the top competitors of boAt. It is headquartered in Park City, Utah and was founded in 2003. Skullcandy also works in the electronics industry.

Apart from these, there are certain other competitors of boAt like pTron, Boult Audio, Fire-Boltt, and Ambrane.

boAt - Future Plans

One of the main reasons for boAt's success is that they are aware of the trend of customers buying earbuds together with new smartphones. This is in line with a larger trend in the business, where big phone manufacturers collaborate strategically with audio providers to offer bundled prices that deter independent purchases. Co-founder of boAt Aman Gupta claims that changing market dynamics are reflected in this bundling technique.

boAt has a strategic positioning that focuses on providing fashionable yet reasonably priced products for Indian consumers in order to address the growing demand for technology gadgets. While considering a public listing in India, there are no immediate IPO plans in the next couple of years after deferring its IPO plans.

FAQs

What is boAt?

boAt is an Indian startup that manufactures and distributes electronic gadgets. boAt is founded by Aman Gupta and Sameer Mehta and is hailed as one of India's favourite audio and wearable brands today.

When did boAt Company start?

The boAt company was started in 2016 by Sameer Mehta and Aman Gupta.

Who are the founders of boAt?

The founders of the boAt are Sameer Mehta and Aman Gupta.

What is boAt's revenue?

boAt's revenue in FY23 increased to Rs 3,377 crore, demonstrating remarkable growth compared to the previous fiscal year's revenue of Rs 2,873 crore.

How much funding has been raised by boAt?

boAt Lifestyle has successfully raised $177 million in funding over 7 funding rounds, as of October 28, 2022.

Is boAt an Indian company?

boAt is an Indian Company. It is headquartered in Gurgaon, Haryana, India.

How much is boAt's valuation?

boAt's valuation is around 1.4 billion, as of October, 2022.

How are boat headphones?

According to most reviews, boAt headphones are decent in quality, amazing in design and looks, and pocket-friendly too. boAt is building its brand image and credibility through these qualities that the branch wields.

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