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boAt raised $ 100 million from Warburg.

The earwear audio brand said that the New York-based private equity firm Warburg Pincus invested $100 million in boAt for a large minority stake, without sharing its current valuation or the amount of equity dilution.

A source, familiar with the particulars of the contract, pegged boAt’s value at approximately 1,600- 1,800 crore. A senior company executive said that Fireside Ventures, an early-stage investor that chipped in ~6 crores in 2018, sold part of its holding.

Aman Gupta, co-founder and CMO, boAt, said the company would use the capital to invest in R&D and develop local manufacturing.

In 2016, along with entrepreneur Sameer Mehta, Gupta, who worked with Harman International as sales director at the Samsung Group’s US subsidiary, formed boAt.

In the previous financial year, the company reported earnings before interest, tax, depreciation, and amortization (Ebitda) of Rs 50 crore, Gupta said, on net sales of Rs 700 crore.

The company, which sells headphones, earphones, and sound-related accessories, has announced that by the end of the current financial year it will expand by 40 percent.

According to Counterpoint Research data, it has an 18 percent share in the True Wireless Stereo (TWS) market in India, where competitor TWS brands range from Mi (16 percent market share), Realme (12%), JBL (8%), and Apple (6 % ).

“In order to develop India as a global supplier, we will pursue vertical integration across both the audible and wearable space”, cofounder Mehta said.

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