boAt, an Indian mobile accessory brand, recently secured $100 million from the US equity fund. But, why?
Chinese companies such as Xiaomi, OnePlus, Oppo, etc, have established the country’s monopoly across Indian industries including tablets, computers, laptops, etc. However, there is one Indian market where Chinese products are getting a run for their money: mobile phone accessories.
boAt, an Indian hardware start-up brand, has managed to make its place in the smartphone accessory market. Founded by Sameer Mehta and Aman Gupta, boAt India is an example of how a smart business model based on market knowledge can help in the exponential scaling of a venture.
Initially, the start-up sold charging cables and power adapters. boAt India targeted the market between local and showroom accessories with economical pricing that put them in the limelight. Aman Gupta, who has worked as the Sales Director at Harman International, the parent company of accessory brand JBL, is the boat founder.
An instant hit in the middle-class section of society, their products built the brand’s target audience on the go and retained it through smart marketing with youth icons such as Rishabh Pant, Shikhar Dhawan, Prithvi Shaw and many more Bollywood stars. Result?
boAt India has now expanded to smartwatches, fitness wearables, headphones, earphones, and Bluetooth speakers. Recently, it secured funding worth $100 million in a Series B round from Warburg Pincus, a US-based private equity firm.
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According to Sameer Mehta, the co-founder of boAt, this is expected to enable the brand to enter the gaming mouse and keyboard market. Furthermore, a new R&D unit is expected to enhance their Indian manufacturing capabilities and contribution towards the Make in India initiative.
With the positive market response, boAt India has gambled, and successfully capitalized on market trends with products such as Airdopes. Emulating the features of Apple Airpods worth Rs 22,000, boAt introduced Airdopes starting at Rs. 1,299 with OnePlus Buds Z and Realme Buds Neo as its immediate competition priced at Rs. 2,999 followed by Mi True Wireless available at Rs. 3,999.
As of now, no direct competition and increasing customer confidence continue to hail boAt as the leader in Indian smartphone accessory market.