"Venture debt definitely helps us keep the capital structure intact. boAt's financial performance has been strong since inception," said Aman Gupta, co-founder of
"Our efficient and lean business model, coupled with targeted business insights, has allowed the brand to enjoy logical margins so that we can earn money and not burn money," added Gupta.
The company said that the trendy look and feel of boAt
speakers and headphones have led to the new category of 'hearables', akin to fashion accessories. It has created a community of over 1,200,000 'boAtheads', or consumers. The firm said that every three minutes there is a new consumer being added to the boAt
family. The brand sells over 8,000 units per day and, on an average, five units every minute. The products, which are available via online platforms such as Amazon and Flipkart as well as offline retail store chains like Croma and Vijay Sales, are made through contract manufacturing in India and China.
Retail giant Walmart's acquisition of Flipkart for $16 billion last year not only provided blockbuster exits to its investors but also turned the founders — Sachin and Binny Bansal — into billionaires. Both Sachin as well as Binny are now active in the Indian start-up ecosystem, backing several promising start-ups through their personal funds and family offices.
Besides boAt, Sachin has also made investments in ride-hailing company Ola, smart electric scooter company Ather Energy, vehicle sharing start-ups Vogo and Bounce, and SigTuple, which uses artificial intelligence to aid medical diagnosis.
The Indian appliance and consumer electronics
market reached $31.48 billion in 2017, according to India Brand Equity Foundation (IBEF). It is expected to increase at a nine per cent CAGR to reach $48.37 billion in 2022. Electronics hardware production in the country reached $60.13 billion in FY18, growing at a CAGR of 26.7 per cent between FY14-18. Demand for electronics hardware in India is expected to reach $400 billion by FY24, according to IBEF.