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boAt in talks to raise funds, eyes IPO in the next 12-18 months

boAt is planning to raise funds and go in for an IPO. Boat’s parent company, Imagine Marketing India , is in talks with three investors, according to its co-founder and CEO Sameer Mehta.

The company has no “pressing need” for capital, said Mehta, “There are some inbound interests from a large global fund, sovereign fund and one strategic investor. It’s still early days, and we are not desperate.”

The cofounder said that boAt is now focused on improving its financial metrics and turning profitable once again in the current fiscal year (FY25). He added that the startup turned earnings before interest, taxes, depreciation, and ammortisation (EBITDA) profitable in the fiscal year 2023-24 (FY24) and expects to become net profitable once again in the ongoing fiscal.

On boAt’s initial public offering (IPO) plans, the CEO said the company is looking at going public only after it turns profitable in FY25. He added that the startup is looking at raising INR 2,000 Cr via the IPO in the next 12-18 months.

“The IPO timeline depends on how fast we improve the financial ratios such as return on capital employed and net profit. We expect to do the IPO in 12-18 months,” he said.

This is the second time it is planning an IPO. In 2022, it filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an INR 2,000 Cr public issue. The markets regulator greenlit the IPO in May 2022. However, the startup later shelved the plans, with cofounder Aman Gupta last year saying that boAt was not in a rush to go for an IPO for the “next couple of years”.

Inc 42

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