Consumer tech start-up boAt, which makes electronic products such as speakers and headphones, has raised Rs6 crore in a round led by early-stage venture capital firm Fireside Ventures, the company said on Thursday.
The New Delhi-based start-up was co-founded in 2016 by ex-Harman International executive Aman Gupta, and Sameer Mehta. boAt said that it will use the current funding for marketing and product development.
The consumer electronics segment in India is largely dominated by large brands like Samsung, Philips and Sony. In recent years, China-based companies including Xiaomi, OnePlus and Vivo have taken over the market share in the smartphone segment in India, giving competition to bigger brands.
However, boAt was able to ramp up its distribution quickly within a short span. The start-up lists its products on e-commerce marketplaces like Amazon and Flipkart. Apart from audio products like headphones and speakers, the company also sells mobile accessories including charging cables and wall chargers.
The company currently claims to have over 800,000 users, and claims to sell 4,200 units per day.
According to co-founder Sameer Mehta boAt’s products have topped the list on several e-commerce platforms. “The company’s products have consistently performed well due to considerable importance to quality and positive word-of-mouth marketing, driven with our passion for meaningful innovation as we expand our community of boAtheads (users),” he added in a statement.
“Our investment in boAt is in line with our investment thesis at Fireside. We look for brands that have identified white spaces and come up with solutions and products that cater to these target audiences. boAt as a brand is doing exactly that. They have created a product line-up that caters specifically to how the Indian consumer wants to listen to music,” said Kanwaljit Singh, managing partner at Fireside Ventures.
Fireside Ventures had closed its first fund worth Rs340 crore in March. The VC fund, which was founded in 2017, currently has investments in consumer brand segments such as personal care, processed foods, lifestyle and home products. It plans to invest in 20-25 consumer brand businesses from its first fund over the next two to three years.
■ boAt is based out of New Delhi, and was founded in 2016.
■ boAt is co-founded by ex-Harman International executive Aman Gupta
■ Claims to have over 800,000 users, and sells around 4,200 units per day.
Source: Mint