D2C brand boAt’s parent raises $60m, withdraws listing plans

Imagine Marketing, the parent company of India-based consumer electronics firm boAt, is raising 5 billion rupees (US$60.6 million) via “private placement through preference shares” to fuel its growth plans.

The participants include existing shareholder Warburg Pincus and new investor Malabar Investments. The fresh funding comes at a valuation of US$1.4 billion, a source told Tech in Asia.

However, according to a company spokesperson, boAt has withdrawn its IPO plans owing to “market conditions.”

BoAt team members / Source: BoAt

Imagine Marketing had filed for an IPO in January to raise over US$242 million at a US$1.5 billion to US$2 billion valuation.

“According to DRHP guidelines, boAt was allowed to raise up to US$21 million before IPO but the company has raised more than US$60 million of equity. So it proactively withdrew its DRHP,” the spokesperson told Tech in Asia.

The company is likely to reconsider IPO plans in the next 12 to 18 months.

Several other tech startups such as MobiKwik, Oyo, FirstCry and PharmEasy are also rethinking their listing plans because of market setbacks.

BoAt will use the fresh funding to gain momentum in the smartwatches category, expand its geographical footprint, strengthen its R&D and design capabilities, and support its efforts to build a local manufacturing ecosystem under the Make-in-India initiative.

“The new funding will allow us to invest significantly to disrupt the smartwatches space with more innovative products,” added Aman Gupta, co-founder and chief marketing officer of boAt.

See also: Rocking the BoAt: How an Indian startup beat Chinese giants at their game

Currency converted from Indian rupees to US dollars: US$1 = 82.4 rupees.