Boat, a rare hardware startup from India, has filed for an IPO of up to $266 million.
Boat said in its DRHP filing that it plans to issue fresh shares worth about $120 million and offer for sale of those shares. South Lake Investment will sell shares in the IPO for $106.4 million, according to the filing.
The startup, which was valued at $300 million in its Series B round a year ago, said it plans to use the IPO proceedings to pay its past debts. One of its investors said it was seeking a valuation of more than $1 billion in the initial public offering. The local media previously reported on the sought-after valuation.
Boatmanufactures a range of electronic products such as headphones, fitness watches, and gaming controllers. The low-cost and premium aesthetic offerings have helped it court young people.
The boat has followed the same strategy that made it stand out in the first place. Its fitness wristband starts at less than $25, Air Pod-like earbuds for less than $30, charging cables at $3, wireless speakers at just over $10, and headphones at $5.
Boat relies on a number of contract manufacturers for production of its products, including those in the audio, Wearable, personal care and other categories.
We rely on these contract manufacturers to make our products, and our contract manufacturers to use third-party suppliers for many of the components used in our products. For the financial years of 2020 and 2021.
Boat has a heavy reliance on third-party marketplaces to sell its items.
Our arrangements with the top online marketplaces are not exclusive. Under our contracts with a few customers, we are obligated to re- purchase or provide additional price support for products that are unsold after a certain period of time.
According to the marketing research firm, Boat commanded over 30% of the Wearable market in India and was the fifth-largest brand in the category as of early last year.
The startup's initial public offering could prove to be a test for the local public market, which has plunged in recent days as investors across the globe worry about rising interest rates in the US and its implications on the tech stocks. The shares of four Indian tech companies that went public last year have fallen in the past two weeks.
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