Wearables startup boAt on Friday deferred its public share sale plans and raised $60 million ( ₹500 crore) from private investors instead, amid continuing concerns over the volatile stock market.
Existing investor Warburg Pincus and new investor Malabar Investments participated in the round, Imagine Marketing Pvt. Ltd, which makes boAt smartwatches and audio gear, said.
Warburg Pincus invested through its affiliate, South Lake Investment, in a private placement of preference shares. A company executive said in the condition of anonymity that the transaction values it around $1.4 billion, the same as it was expected to seek in the initial public offering.
Imagine Marketing plans to use the funds to expand its smartwatch category and scale up business across channels and markets in India and abroad. It also plans to boost its audio category, enhance research and design capabilities, and build up local manufacturing.
The Mumbai-based company filed its draft initial share sale papers with the markets regulator in January to raise ₹2,000 crore. However, like several other startups, such as PharmEasy and Droom Technologies, the company put its listing plans on the back burner, citing tough market conditions.
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