Consumer-tech lifestyle startup boAt has secured a commitment of Rs 20 crore in venture debt from Bengaluru-based BAC Acquisitions, Flipkart founder Sachin Bansal’s investment firm.
The company will use the funds for business operations, an official statement said
The company recorded gross sales of Rs 100 crore in the financial year 2017-18, and is eyeing Rs 500 crore in the next couple of years, the statement added.
“Venture debt will help us keep the capital structure intact,” Aman Gupta, co-founder of boAt, said. “boAt’s financial performance has been strong since inception. Our efficient and lean business model, coupled with targeted business insights, has allowed the brand to enjoy logical margins so that we can earn money and not burn money.”
boAt was launched in 2016 by Gupta and Sameer Mehta. Gupta was earlier associated with Harman International as director-sales at the US subsidiary of the Samsung group. He also worked with consultancy firm KPMG. Mehta’s LinkedIn profile shows he has dabbled in other entrepreneurial ventures.
boAt is a 45-member team with offices in Delhi and Mumbai, and its products like earphones, headphones, speakers and travel chargers are made through contract manufacturing in India and China. The products are available both online (Amazon, Flipkart, Myntra & Snapdeal) and offline (Croma Retail, Vijay Sales & Poorvika Mobiles).
The startup, operated by Imagine Marketing Pvt Ltd, had raised Rs 6 crore from Fireside Ventures in the first round of funding in May 2018.