In 2013, despite concerns within her family, Aman Gupta ventured into a partnership with Sameer Mehta to launch the Boat brand. Gupta’s gamble paid off as Boat swiftly became one of India’s most popular domestic audio brands. Since its inception, Imagine Marketing – the owner and operator of the Boat brand – has witnessed remarkable growth. By September 2021, Boat held a market share of 48% in India’s branded wireless wearables and 23% in the smartwatch segment. This made it the top wireless wearables brand and the second-ranked smartwatch brand in India in terms of volume.
Now, the rapidly expanding digital-first consumer products company is gearing up to tap into equity markets through an IPO route. The funds raised from Boat Limited’s IPO will be utilized for debt repayment and general corporate purposes, aligning with its ongoing mission.
Strength:
- The company owns brands like RedGear, TAGG, Misfit, and DEFY in addition to its main brand, Boat.
- Maintains excellent quality while providing products at reasonable prices with a distinct value proposition.
- Supported by significant financiers like Qualcomm, Warburg Pincus, and Fireside Ventures.
- Between fiscal years 2019 and 2021, revenue and profits have increased by 141% and 228%, respectively.
- Launched approximately 77 and 45 new products in the first six months of fiscal years 2021 and 2022.
- Primarily sells products through online marketplaces, enabling it to serve more than 90% of India’s PIN codes.
- Nearly 83% of sales in the first six months of fiscal year 2022 came from online marketplaces.
- Expects the wearables market CAGR to be between 25% – 35% and aims to reach up to ₹76,500 crore by 2025.
Risk:
- Heavily reliant on the audio segment for revenue, with approximately 83% of revenue coming from the audio category in fiscal year 2022.
- Confronts rivalry from both local and foreign competitors.
- Depends on third-party contract manufacturers and component suppliers to a significant extent.
- Pricing pressures from customers, online marketplaces, or distributors could impact profitability.
- Experienced negative cash flows, including recent experiences of negative cash flows from operating activities.
- To apply for the Boat IPO, it is essential to have a Demat account, and a partnership with Upstox is required for the application process.
Why Boat Is Different From Other?
Boats are quite distinct from many other modes of transportation or vessels for several reasons:
Design and Purpose: Boats are specifically designed for traveling across water, whether it’s a small rowboat for leisurely trips on a lake or a massive cargo ship transporting goods across oceans. Their structure and functionality are tailored to navigate water bodies.
Water Travel: Unlike cars, planes, or trains that primarily operate on land or in the air, boats move on water. This requires different engineering and navigation techniques to manage buoyancy, water resistance, and stability.
Variety of Types: Boats come in various forms and sizes, each serving different purposes. From canoes to sailboats, yachts to ferries, and submarines to massive cargo ships, the diversity of boats showcases their adaptability to different water conditions and tasks.
Propulsion Systems: Boats use different methods to move through water, such as sails, oars, engines, or a combination of these. This variety allows for different speeds, efficiencies, and capabilities based on the type of boat and its intended use.
Environmental Factors: Water presents unique challenges compared to land or air travel. Boats have to contend with tides, currents, waves, and weather conditions that impact their navigation and stability.
Regulations and Navigation: The rules and regulations governing boats are specific to waterways, including considerations for maritime laws, navigation rules, and safety measures like life jackets and distress signals, which differ from regulations for land vehicles or aircraft.
Financial Statement:
How to Apply for Boat IPO:
If you want to take advantage of this investing opportunity but are confused how to apply for the Boat IPO, we’ve described the processes for you below:
- Login to your Demate account.
- After logging in successfully, select the “IPO” Section.
- Under the IPO section, look for the ‘Boat IPO’ tab and click on it.
- Enter all the required information now, including the “lot size” and “bid price.”
- Confirm and click on ‘Apply.’
- Accept on your UPI app.
Open a Demat Account to apply on Boat IPO
For those interested in applying for the Boat IPO and opening a Demat account with Zerodha, a step-by-step guide can be found on the Zerodha website.
- Visit the Zerodha website’s page for opening a demat account by clicking here.
- To open a demat account, enter your phone number and other necessary information.
- If necessary, upload scanned copies of your PAN, Aadhaar card, a voided check, and a bank statement.
- Utilize the OTP issued to your registered mobile phone to complete the e-verification.