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How did a New Delhi Startup became India’s no. 1 earwear audio brand?

In today's blog we will have a closer glance at boAt

Introduction

  • Wireless speakers, earbuds (Airdopes), wired and wireless headphones and earphones, home audio equipment, premium tough cables, and a variety of other technology accessories are among the products offered by boAt, an Indian firm.

 

  • The creators sought to build a lifestyle company that would provide millennials with attractive audio goods and accessories. This concept was conceived by a boat. As of 2020, the firm began its journey as a cable maker and supplier, quickly expanding its categories to service over 800,000 clients.

 

  • Boat began as a self-funded venture with an initial investment of roughly Rs 3 lacs from the founders.

Strategy

  • The creators put their studies into practise and created items that were inexpensive, long-lasting, and trendy. BoAt focuses on developing a customer-brand connection in which customers are treated as members of the Boat family.

 

  • They also put a lot of emphasis on the Boat brand, portraying it as an Indian one.
    Because Indians are huge fans of cricket and Bollywood films, boAt decided to utilise cricketers and other celebrities as brand ambassadors for the brand.

 

  • With clever pricing and great appearance, all of these enabled the firm build a significant consumer base and become a billion-dollar corporation in India. Boat currently boasts that four goods are sold per minute.

Growth

Croma stores, as well as Myntra, Amazon and Flipkart, sell the company’s products. The company’s quality performance of Boat goods has aided it much in obtaining the growth it has had over the years.

  • In just four years, Boat has attracted over 800,000 clients.
  • boAt claims that every three minutes, it adds a new boAthead to its clan.
  • The firm sells 4 units every minute and nearly 6,000 pieces each day. boAt audio was named the leading brand in the earwear category, with a market share of 27.3 percent.
  • For the past 5 years, the company has been profitable.
  • Boat’s goods are sold in over 5,000 retail locations and are backed by over 20 distributors.

Revenue

  • Revenues for boAT increased about double, from Rs 704 crore in FY20 to Rs 1,531 crore in FY21. In FY21, boAT’s revenue from operations was Rs 1,511 crore, with revenue from other sources totaling Rs 19.57 crore. During FY21, boAT’s EBIDTA was reported to be Rs 127.1 crore.

 

  • Boat’s earnings climbed by 61 percent to Rs 78.6 crore in FY21, compared to Rs 48.85 crore in FY20. However, boAt’s spending increased by 122 percent. In FY20, it was worth Rs 637.5 crore, while in FY21, it was worth Rs 1,420 crore.

Acquisitions

  • Tagg and Cove IoT are two firms that boAt has bought. Boat just recently acquired the latter on January 15, 2022. Boat will benefit from the purchase of KaHa Pte Ltd (Cove IoT), a Singapore-based smart wearables IoT (internet-of-things) product development company, by enhancing the development of its wearables with the support of KaHa Pte Ltd’s (Cove IoT) creative concepts and design.

 

  • According to the latest sources, boAt was planning to buy Tagg Digital, a consumer electronics company located in Delhi. Despite the fact that conversations on the subject have been ongoing for about two months, the deal’s details have lately been concluded. It was also revealed as part of the purchase that the company’s co-founders and the Tagg Digital team will join boAt when the transaction was completed. Tagg was finally bought by the brand on June 9, 2021.

Future Plans

  • The business feels that buying earbuds together with new smartphones is always a trend. Boat believes that this notion will help them succeed. The big phone manufacturers, according to sources, are in the process of establishing new relationships with audio businesses. Samsung, for example, has JBL and Harman, whereas Apple has Beats, and so on. These companies are luring customers in with great offers so that they don’t have to buy earbuds or headphones individually.

A walk through the History of boAt

2016

boAt was founded by Sameer Mehta and Aman Gupta

2019

 boAt raised $100 million from New York-based private equity fund Warburg Pincus.

2021

boAt acquired  Delhi-based Consumer Electronics Brand Tagg Digital

2022

Singapore based KaHa Pte Limited acquired by Imagine Marketing (boAt) 

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