Boat’s Revenue Crosses Rs.1,500 Cr in Fy21 With Just Rs 14 Crore Being Spent on Wages
BoAt, a startup in the field of consumer electronics, is one of the top makers of wearables and audio accessories in India in the past few years. BoAt is also planning to announce its first public offering in the near future with a price of more than $1.4 billion; it has made a profit and crossed the Rs.1,500 crore in revenue during FY21.
boAt has recorded a 2.2X increase in operating revenue which increased from 700.44 million in FY20, to 1,511.7 million in FY21. the company’s annual financial report with the MCA exhibits. The wireless earphones and headphones comprised the biggest product category by sales accounting for 62.7 percent of the company’s operating earnings in FY21. The sales increased by 2.5X to 947.4 crore in FY21, up from just Rs 375.7 crore in FY20.
The Mumbai-based firm creates the products it sells in India however its production and assembly take place in China. The cost of purchasing its stocks for trading is the most significant expense that the firm has to pay and accounts for almost 73% of the total annual cost.
Also read: Dunzo Raises $240 Million Led by Reliance Retail
The company has made $100 million through an equity round that was led by Warburg Pincus at the start of Q4 FY21. It also has plans to move its manufacturing operations to India. The company’s consumer electronics division intends to make use of this Indian government’s production tied incentive(PLI) program.
The seven-year-old company is focused on promoting its products extensively online. Its advertising promotion costs were the second-highest cost center for boAt which accounted for 10.3 percent of boAt’s total annual costs. These expenses nearly doubled to 147 crores in FY21, up from just Rs 51 crore in FY20.
Major operations functions, like production and after-sales outsourcing, boAt operates with a small staff of employees, and staff expenses occupying just 1percent of its annual expenses. The cost of employee benefits increased by 125.7 percentage YoY to 14.31 billion (including director remuneration that is around two crores).
The company that was backed by Qualcomm also offered a stock buyback at the period that ended in March 2021 that amounted to about around 140 crores. Co-founders Aman Gupta, as well as Sameer Mehta, were among the largest recipients of this purchase receiving a bit more than 81 percent (i.e. approximately Rs 113.6 crore, or 56.8 crore per) from the purchase amount
You may also like: AgroStar Secured $70 Million in its Series D Financing Round
boAt has had a solid financial performance during FY21 and was the first electronic consumer Direct to Consumer (D2C) startup to reach the Rs. 1,500 crore mark in revenue. Despite the aforementioned pandemic, boAt has grown rapidly, with an increase of 61% in profits. Contrary to many companies in the late stage and growth stages boAt has been able to achieve this level of revenue with minimal expense for employee’s wages or other, non-profit benefits — 14.31 crore.
For all the latest happenings in the business world and the latest startup news, subscribe to entrackr’s newsletter.
Also read:
Entrackr 