Archive · 9 Nov 2025
boAt IPO Faces Scrutiny Over Founder Resignations and High Employee Attrition
A company called boAt, which makes things like headphones, is planning to sell parts of itself to the public through an IPO.
Before doing this, the two main bosses who started the company decided to stop doing the day-to-day work and are now just advisors.
This happened just before they officially asked to sell these parts.
The company also shared that a lot more of its workers are quitting their jobs than before.
In the last year, about one out of every three full-time employees left.
They even said they can't promise that everyone will always be happy working there and that no one will ever go on strike.
This is making people who might buy parts of the company worried because it could affect how well the company works.
boAt's IPO of Rs 1500 crore is facing scrutiny due to rising employee attrition and co-founders stepping down from executive roles.
The company reported a full-time employee attrition rate of 34% in FY25, with 161 employees leaving that year.
Co-founders Sameer Ashok Mehta and Aman Gupta resigned from their executive positions just 29 days before the IPO documents were filed.
boAt acknowledged the intense competition for skilled personnel and the potential adverse impact on business if key employees are not retained.
The company stated it cannot assure that employee relations will always remain cordial, raising concerns about potential labor unrest.
- Who
- Consumer electronics startup boAt, its co-founders Sameer Ashok Mehta and Aman Gupta, and potential investors.
- What
- Scrutiny of boAt's upcoming Rs 1500 crore IPO due to rising employee attrition and co-founders stepping down from executive roles shortly before filing.
- When
- Co-founders stepped down 29 days before IPO filing; attrition rate of 34% reported for FY25; data up to the first three months of FY26 included.
- Where
- India (implied by the company's operations and IPO filing).
- Why
- Concerns are raised for potential investors regarding the company's internal stability, ability to retain talent, and potential for labor unrest, despite its IPO plans.
Concerns Raised
Company's Stated Reasons and Financial Context
Founder's Role Change
Concerns Raised
Founders Sameer Mehta and Aman Gupta stepped down from executive roles just 29 days before the IPO filing, which could be viewed as a strategic move to distance themselves from operational risks immediately preceding a public offering.
Company's Stated Reasons and Financial Context
The co-founders transitioned to non-salaried board positions, indicating a strategic shift in their involvement from day-to-day operations to advisory roles, without specifying a reason beyond the IPO filing timeline.
Employee Attrition
Concerns Raised
A significant and rising employee attrition rate (34% in FY25) is a major concern for potential investors, signaling potential internal issues, dissatisfaction among staff, and risks to business strategy implementation.
Company's Stated Reasons and Financial Context
The company acknowledges the intense competition for skilled personnel and the potential impact on its business if key employees cannot be retained or replaced, stating that success depends on its management and operational workforce.
Employee Relations Assurance
Concerns Raised
boAt's admission that it 'cannot assure you that our relations with our employees shall remain cordial at all times' raises red flags about potential labor unrest, strikes, or work stoppages that could disrupt operations.
Company's Stated Reasons and Financial Context
While acknowledging the potential for labor disputes, boAt also stated that it 'has not experienced any strikes or labor unrest in the past,' suggesting a historical lack of such issues despite future uncertainty.
- Co-founders' Transition
- Sameer Ashok Mehta and Aman Gupta stepped down from executive roles 29 days before IPO filing, moving to board positions.
- Employee Attrition Rate (FY25)
- 34% among full-time employees.
- Employee Departures (FY23-FY25)
- 107 in FY23, 132 in FY24, and 161 in FY25.
- Recent Departures (FY26)
- 31 employees within the first three months of FY26.
- Total Workforce (as of June 30)
- 553 full-time employees and 407 contractual workers.
- IPO Filing
- Rs 1500 crore IPO filed.
