BoAt, a direct-to-consumer(D2C) consumer electronics brand, has reported impressive revenue growth. According to filings with the Registrar of Companies (RoC), its revenues rose from Rs 27 crore in FY2017 to Rs 108 crore in FY2018, representing 3x growth year on year. The brand claims to sell over 6,000 units per day, with four units sold every minute. Additionally, they add one boAthead which they refer to customer to their family every three minutes.
BoAt plans to launch a sales campaign worth INR 500 crore in the next five years.
Despite a cluttered market, the homegrown brand has successfully carved out a place for itself. Even prompted global giant JBL to lower its prices in India to compete with BoAt in the affordable audio segment. Now let's discuss BoAt's business model and future:
A Brief A Detail About BoAt
BoAt is an Indian company specializing in electronic gadgets focused on audio. Their products include wireless speakers, earbuds (Airpdopes), wired and wireless headphones , home audio equipment, premium rugged cables, and other accessories. The company thrives in the lively and constantly changing consumer electronics industry, which plays a crucial role in India's growing technological landscape.
This company has grown remarkably due to the increasing demand for electronic devices and gadgets. With its significant presence, boAt is at the forefront of this dynamic market, ready to adapt to the changing preferences of tech enthusiasts and tech-savvy consumers.
Also, Statista predicts that the Consumer Electronics market in India will generate a revenue of $69.15 billion by 2023, with a steady annual growth rate of 5.89% (CAGR 2023–2028). This indicates that investing in BoAt unlisted shares could be advantageous for many investors.
The founders of boAt aimed to create a lifestyle brand offering millennials trendy audio products and accessories. BoAt is the result of this idea. The company began as a cable manufacturer and seller but soon expanded its product range to cater to over 800,000 customers. BoAt started as a bootstrapped startup with a capital of around Rs 30 lakhs provided by the founders.
BoAt Business Model
BoAt is a brand that offers a variety of products to cater to a lifestyle audience, including earphones, speakers, headphones, smartwatches, and trimmers. In the ear wear category, BoAt holds a market share of 27.3%, making it the leading brand.
In FY2021, BoAt earned a revenue of ₹1,531 crores, with a profit of around ₹127.1 crores. In FY21, its earnings increased by 61% from ₹48.85 crores to ₹78.6 crores. BoAt focuses on providing wired earphones at the lowest possible prices, with products ranging from ₹350 to ₹550.
BoAt's products are in high demand due to their good quality and affordable prices, which has resulted in a demand-pull effect. They do not need to market their products extensively as they are already popular. For instance, the BoAt Stone portable Bluetooth speaker was an instant hit, priced at around ₹2,000, whereas competitors were selling similar speakers for ₹5,000.
Future Plans Of BoAt To Keep Its Market Position
The company has successfully gained a significant market share in the wearable audio industry and is now expanding its product line to personal care products and smartwatches. The company has acquired two innovative startups, Tagg and KaHa, to support this expansion. Tagg is an Indian consumer electronics company that specializes in smartwatches, earphones, and speakers. Founded in 2016 by Rohit Dhingra, Amitesh Bharadwaj, and Saurav Prakash, Tagg has been a self-funded company up to this point. KaHa, a Singapore-based startup, focuses on smart wearable IoT development. These acquisitions will help the company continue to create innovative products.
Why it is Good For Investors To Invest In BoAt Unlisted Shares?
Boat believes that the future of audio products is bundled with smartphones and can be accessed through Bluetooth channels. As a manufacturer, if you want to attract customers looking for attractive and effective headphones or earphones, offering them as a separate product is essential. Aman points out that this is where the market is moving so he unlisted shares. Now lest have a look upon table which shows the huge growth of unlisted shares:
Final Word
BoAt has managed to perform well in a highly competitive industry dominated by established traditional payers. It has already captured a significant share of one-fourth of the wearable market in a short period. However, BoAt faces numerous challenges, but still stands as a popular company so investing in this will be a good option. Also in the coming years it will grow more.