Want to know about the Boat Company and Boat Turnover? Well you have landed on the right article
Portable Electronics have been in use for quite some time. As we all need to travel, even music systems have been travelling along with us for years now.
The problem is that electronic goods which are produced outside the country are quite expensive. Also these lack the fashionable trends. They look plain and dull.
Taking this as a niche point the Company called boat lifestyle has arisen in this market. Boat Lifestyle is an electronics company targeted to the millenials. This company is based in India.
Boat Lifestyle is a company known for its major market share of electronic goods. The success story of this brand is quite intriguing.
As it has acquired 800,000 customers also known as 'boatheads'( the owners call them this way) in just 4 years of time.
Now they are ranked 5 th in the wearable electronics market. The boat company makes about $206.07 mn in boat revenue and it is valued at $299.59 mn.
Now how did this company acquire this? Just so simple it has provided its customers with affordable yet fashionable products.
Boat Turnover 2022
boat company turnover : The company earned most of its money by selling products, which added up to a total of Rs 2,870.7 crore.
A large chunk of this amount - Rs 2,276 crore - came from selling audio products like wired and wireless earphones, headphones, speakers, and soundbars. This was a big increase of 85.25% from the previous year's audio product sales of Rs 1,228.6 crore.
What is the Boat Revenue Model ?
The market strategies Boat is based on the following:
Consumer's Needs - Boat has been able to sell 4 products every single minute. This was achieved by understanding their customers' needs.
They as mentioned before are selling affordable and durable made in India products. Customers always looked for longer wires.
They also preferred untangling sets of headphones. Plastic is another issue in the Indian market.
Consumer's Desires - They comprehended that Indians require fashionable but not expensive goods. This desire made them into a multi million dollar brand.
This company produces in China and sells it in India. Anyone could turn sceptical as this is a crowded industry with players from Korea, China and the United States.
Despite this their marketing strategy was also behind their success. The Apple charger issue of breakage was overcome by boat.
The co-founders launched a charger which had a braided cable, with a life cycle of 10,000 bends. This cable became number one selling on Amazon in no time.
Their adverts have actors and cricket players. This makes a good marketing point as this attracts the attention of the consumers.
Consumer's Behaviour Pattern : The idea of affordable offers are the most feature any customers require in any part of the world.
With India being a country with majority belonging to middle class families this is the basic Customer Behaviour pattern.
This was also the focus of the owners of this brand. This company sells its products on ecommerce platforms. Market it on social media platforms.They tend to select the white space which is the sub premium level of electronic goods brand.
The Indian market loves bass this is according to the founder. So they launched their first earphones called €” BassHeads.
They have been able to raise 60 million dollars from Kanwaljit Singh of Fireside Ventures. As they were able to find the gap in the market.
The company's cofounder is said to have worked with JBL concerning offline stores.After they have got the idea by working at various electronic devices companies.
They got the desire to start up their own business. This was done by investing 1.5 million from their personal savings.
Their revenue from earphones are growing 20- 30 percent annually. This is estimated to be 30 to 40 million dollars. The sound bar sells 30 to 50 units per day is another major product of Boat. The sales are expected to hit 30 to 20 million this year.
They call themselves Zara of Electronics. This is because they have priced and produced their products to fit in the middle range.
That is between the high price and lower price ranges. They also have a concern over their revenues being affected but the Chinese sellers.
Now the company is trying to manufacture in India. They have been in talks with the Indian electronics manufacturer Dixon.
Who are the bright minds behind this product?
Aman Gupta and Sameer Mehta are the minds who started up this successful business. Their aim was to give durable fashionable products at affordable prices.
- Aman Gupta
Aman Gupta is the co-founder and Chief Marketing Officer at Boat Lifestyle. He is the alumnus of Kellogg School of Management from Northwestern University from where he holds a MBA degree.
He was a chartered accountant prior to starting up the Boat lifestyle. He also started Imagine marketing India which is the parent company of Boat since 2014. - Sameer Mehta
Sameer Mehta is the co-founder and Chief Procurement Officer (CPO)at Boat. His first startup was Redwood Interactive. Also, he is the Executive director of Kores.
He holds a Bachelor's degree in Commerce and he is an alumnus of Narsee Monjee College of Commerce and Economics.
Rise of Boat Company
Gupta and Sameer began their company just as a cable manufacturing and selling company. This company started to diversify to cable-related products such as: travel chargers, premium cables to headphones, earphones, speakers.
At the beginning they had been just distributors of electronic devices from other companies under the name House of Marley.
The name comes from the tagline you plug into nirvana. You tend to go into another world after going into a boat. This is how the name Boat originated.
What is the core idea behind their product?
The notion behind the Boat brand originated from the unappealing appearance of headphones which were sold by other brands in the country.
If the product did look good it simply is of a higher price. This was and is the problem the founders Mehta and Gupta identified.
They wanted the millennials who were looking for affordable but fashionable earphones to be happy. Hence the company was created around this notion and it became a huge success.
Boat Company Valuation
It all started in 2018 when Kanwaljit Singh of Fireside Ventures invested 60 million in the startup. He (Mr. Singh) was very impressed with the way they presented their product and their good quality products.
Since then the company has been performing really well and has already made more than 100 crores in the Indian market. When it started it had just two founders, but now it is a 35 member team and now has its offices in the top two metro cities i.e. Mumbai and Delhi.
According to the reports from RoC BoAt’s FY2018 revenues grew 108 crore from only 27 crores in FY2017. Which is more than 3 times in a year. After this the company never looked back. It kept on making and giving out the best audio products to their customers.
It also keeps on adding one boAthead to its family every three minutes. Now, this boat is targeting more than 500 crore in next five years. boAt’s products were ranked as number 1 selling ear bands all over.
In its initial days, boat used to sell its products mainly on e-commerce platforms- Amazon and flipkart. But today if we see then company is present in more than 5000 retail stores. Also is supported by 20 distributors.
The company is claiming to sell 10000 units a day and more than 4 million units per year. It even says that the company has served more than 20 million Indians till now.
How are consumer reviews valuable for the Boat ?
The Boat team looks at the reviews as a great tool to understand the customer's needs and desires. Through these reviews they were able to launch fall proof earphones in various colours. The idea for which came through the customer reviews.
About 270 million of the revenue was reinvested into the company. This has currently led to 60 million dollars of revenue. This revenue of 90 per cent comes from the famous cables of Boat. The rest is from the earphone sales.
- Offline sales :
The Indian millennials tend to be thrifty. They do not want to pay for the shipping charges involved online. This is eliminated if purchases are done offline.
Offline sales make upto 20 to 30 per cent of the entire whole. This constitutes 15 per cent currently but may increase further in the coming months.
Mirchandani is not confident about offline sales. This is because offline involves the product-build quality, packaging, customer service and retail marketing.
The expenses involved are also quite high concerning offline sales. Lakme fashion week saw the models wear the ear gear as boat is a lifestyle brand. They tend to make 40 to 50 billion brands by next year.
- Boat growth and revenue :
The boat company saw a growth of 460 per cent in the year 2020. This is being the time of the pandemic. This is estimated to be 704 cr for FY 22.
This is triple the amount of revenue since it began in the year 2022. The wireless earphones make up 53 per cent of the sales.
Bluetooth speakers and earphones make up 18 per cent and 16 per cent of the sales. Chargers, cables and smartwatches make up to 11 per cent.
The company spends about 78 per cent of its capital on purchases. This amount is 2.5 times that of last year. The first half of 2022 had a revenue of Rs 1,547.8 crore.
The investments for the company included: Warburg Pincus and Qualcomm Ventures making investments of Rs 750 crore and Rs 50 crore respectively.
Through its IPO the company is trying to raise 5 to 6 times the revenue of the year 2022. "Rs 18,500 crore" is the amount it is trying to raise.
- Employees :
This company trying to expand its employee base. It has also added another 2 crores for its employees. The company's sales and distribution channels spending stand at 27.3 crore in FY 2020 which is upfront 4.4 crores.
The amount spent on a rental is ₹ 637.6 cr for FY 20 For every Rs 0.91 spent the company gained a rupee. The company was valued at 2,200 crores when the company began to get investments from Qualcomm Ventures. By the end of March this year they were expected to get a revenue of 5 to 6 times of last year.
The company has tied up with Dixon the Indian manufacturer 50 - 50 per cent. The company has acquired the Singapore company KaHa Pte Ltd for 300 to 400 crore.
The company growth could be from 400 million to 2-4 billion dollars. The IPO is to raise $1.4 billion in the coming years. Gupta and Mehta are expected to sell some of their 56 per cent of shares in the company.
For the financial year 2021, the company had a revenue of Rs 1,500 crore. The company holds about 20 per cent of the market shares.
Boat Revenue | is boat profitable
net profit of boat company : During FY21, the startup had invested INR 47.8 Cr in advertising. However, in the following financial year, FY22, boAt's profit decreased by 20.6%, falling from INR 86.5 Cr to INR 68.7 Cr.
The company had an Rs. 78.6 Cr in FY21 of profit after tax which is a 61% rise from the profit of INR 48.85 Cr. The investment for manufacturing saw a hike of 122%from INR 637.5 Cr in FY20 to INR 1,420 Cr in FY21.
The boat company has raised capital from various companies such as Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Fireside Ventures etc.
The growth has increased by the demand for wireless earphones these days. Wireless earphones are more convenient compared to wired earphones as they do not have tangling issues.
The growth of the company was boosted by the sale of headphones. This stands at $870 Mn in 2021 and is expected to grow annually by 3.26% CAGR.
The company's major revenue for growth comes from cable. The company mostly sells on Amazon. The Boat has understood the needs of consumers in India to grow fast as possible.
The company competes internationally with brands such as Sony, Bose, Apple and Skullcandy, among others. In India, its top competitors include Noise, Leaf, and Mivi, among others.
The company Boat is the third-largest brand after the United States and Chinese companies in India.
The reason behind their success
The company has been around for 6 years now. The company saw a recent surge in profits in the past years. This can be attributed to the following aspects:
The Pandemic itself. Those companies which are online on Amazon selling on online platforms have seen an increase in their growth in the past years.
They had been using online social media as an advertising platform. This strategy has helped to streamline customers to Amazon.
They understood the core of what the customer desires. The customers in the electronics sector require portability, fall-proof and durable chargers.
There is also a rise in demand for wireless earphones at affordable prices. They also understood the Millenials( their target audience is interested in fashionable products).
They created products which eliminated the above problems.
They started using earphones which are wireless.
They also sell affordable iPhones which have long wires and are fall-proof. They also incorporated the tangible proof aspect.
Their cables which contributed to huge profits were made to eliminate the problem of breakage.
- Their focus is also to be a lifestyle brand. They have used the fashion platforms such as fashion weeks to put out this message.
They are also one of the few brands which make their products not just affordable but also fashionable. They have an appealing look.
They chose platforms such as Amazon for selling their goods. They tend to also provide offers such as discounts to make their products more affordable.
They also tend to use actors and cricketer players as their brand ambassadors.
They tend to invest more money into their businesses. As this is what drives the business.
They also look at the reviews provided by their customers for new ideas. They introduced new colours as they found customers found their product boring.
They also found the idea for fall-proof earphones from the customer review.
Offline stores are seen as more expensive by this brand. They are looking for the company to be an e-commerce brand.
They reduced their manufacturing costs by opting for Chinese manufacturers at the beginning. Now they are switching to Indian manufacturers.
They have been trying to sell goods which fall between premium brands such as Apple and lower-cost brands such as lava. They have been focusing on the Millenials and closely studying their needs. One of the co-founders studied the market for 2 years before he delved into the electronic goods market.
They spread a good reputation by paying their employees well. The happiness of the employees is directly reflected on the goods or services they produce. This is religiously followed by the company.
The company is now trying to make its goods in India so that it would increase the GDP of the country and be part of the country's initiative to be competitive to China.
Discounts are another strategy for their success. The products on discount tend to make the customers buy most products.
Overall, the company had been trying to give their customers quality products that they were able to buy with minimum hassle.
Conclusion
The Boat Company is an Indian company which has become a million-dollar company in the past few years. They are aiming to become a billion-dollar company in the coming years. They are the third-largest electronic equipment company in India.
The company has tripled its revenue in the past years. The company has acquired a company in Singapore. It has by this act indirectly expanded into the international market.
Internationally also it is a competitor for bose, sony and other companies.
Their boom was possible as the pandemic was at its height. This made it best to look for products online. The company jumped to become a million-dollar company. They soon are aiming to become a million-dollar company.
I hope you liked our article on Rise of Boat Company and Boat Turnover , if you have any comments or suggestions do share them in the comments below
Frequently Asked Questions
1. What made boAt a success?
The Boat is a successful company due to its understanding of the needs of the customers. The brand also makes sure it's products are affordable.
This is done by reducing manufacturing and operational costs. They have been catering only to affordable cables, not expensive ones.
The Indian market holds customers who only opt for affordable goods with great quality. Their products have great quality. The co-founder had to visit the Chinese plants to make sure there was no compromise of quality.
2. Is boAt a successful company?
Yes Boat is a very successful company with millions of dollars in profits. The boat company saw the growth of 460 percent in the year 2020.
This is being the time of the pandemic. This is estimated to be 704 cr for FY 22.This is triple the amount of revenue since it began in the year 2022.
3. Boat profit 2022?
Yes, boats are making a profit in millions. The first half of 2022 had a revenue of Rs 1,547.8 crore.They expect their profits to go up by the next few years. They also have a high net profit rate, that is after payment of taxes.
4. Who are the founders of the boat ?
Aman Gupta and Sameer Gupta are the founders of boAt. Aman Gupta is the co-founder and Chief Marketing Officer at Boat Lifestyle. He is an alumnus of Kellogg School of Management from Northwestern University.
Sameer Mehta is the co-founder and Chief Procurement Officer (CPO)at Boat. His first startup was Redwood Interactive.