Archive · 31 Oct 2025
boAt Aims for Premium Market Ahead of IPO, Faces Analyst Skepticism
boAt, a company known for making affordable smartwatches and earbuds, wants to start selling more expensive, premium products.
They are planning to raise money through an IPO, which is when a company sells shares to the public for the first time.
boAt wants to use some of the money to make their brand more known and to develop new products.
However, experts think it will be hard for boAt to convince people to buy their pricier items because they are used to buying their cheaper ones.
The market for smartwatches is also shrinking, making it even tougher.
boAt plans to spend money on research and development, but it's unclear exactly how much or on what.
They are also looking to sell their products in other countries like the UAE.
boAt, a leading Indian wearables brand, is planning an IPO to raise ₹1,500 crore, with a focus on shifting towards premium products.
Analysts express skepticism about boAt's ability to shed its 'value' brand image and succeed in the premium segment, citing market challenges.
The company will allocate ₹150 crore of the IPO proceeds for brand and marketing to support its premium strategy.
boAt's R&D spending has historically been low, between 1.3% and 1.7% of revenue, with plans for investment yet to be detailed.
Market data shows a decline in smartwatch shipments, while audio product growth is slowing, posing challenges for boAt's strategic shift.
- Who
- boAt (Imagine Marketing)
- What
- Attempting to shift focus to premium products and pursuing an IPO.
- When
- Revised IPO draft filed recently; previous attempt in January 2022.
- Where
- India, with potential expansion to UAE, South Asia, and Southeast Asia.
- Why
- To increase profit margins and enhance brand image by selling more expensive products.
boAt's Strategy
Analyst Concerns
Brand Perception
boAt's Strategy
boAt is aiming to develop and market premium products, investing in brand awareness and R&D to support this shift.
Analyst Concerns
Experts believe it will be difficult for boAt to shed its established 'value' brand image and successfully transition to selling premium products.
Market Conditions
boAt's Strategy
The company believes there is sustained demand for premium devices and is positioning itself to capture this market.
Analyst Concerns
Analysts point to a declining smartwatch market and slowing growth in audio products, making a strategic pivot challenging and potentially volume-impacting.
R&D Investment
boAt's Strategy
boAt plans to invest in R&D through boAt Labs to create original designs and expand product categories.
Analyst Concerns
Current R&D spending is low (1.3-1.7% of revenue), and details on future R&D allocation are vague, with industry prioritization often favoring other investments.
- Company Name
- Imagine Marketing (boAt)
- Founded
- 2016
- IPO Target
- ₹1,500 crore
- Funds for Company Use
- ₹500 crore
- Brand & Marketing Allocation
- ₹150 crore (30% of company funds)
- R&D Spending (Past 3 Years)
- 1.3% - 1.7% of revenue
- FY25 Revenue
- ₹3,097.81 crore
- FY25 Profit
- ₹61 crore