Imagine Marketing Limited, known for its consumer electronics brand boAt, was one of the most talked-about startups in India’s D2C space. In 2022, the company was valued at nearly ₹10,000 crore (~$1.2 billion), driven by strong growth in audio products and wearables.
Fast forward to FY2025, the narrative has shifted. Revenue has fallen for three consecutive years, with a steep drop in the wearables segment. As boAt heads toward an IPO, investors face important questions about whether such a valuation can be sustained.
| Financial Year | Revenue (₹ Cr) | PBT (₹ Cr) | PAT (₹ Cr) | EPS (₹, fully diluted) |
|---|---|---|---|---|
| 2024-25 | 3,089 | 83 | 64 | 4.26 |
| 2023-24 | 3,121 | -70 | -53 | -3.57 |
| 2022-23 | 3,284 | -135 | -101 | -10.46 |
Although FY2025 marks a return to profitability, the declining revenue trend remains a red flag.
By Segment (FY2025 vs FY2024)
Audio: ₹2,586 crore (up from ₹2,459 crore)
Wearables: ₹320 crore (down sharply from ₹536 crore)
Others: ₹154 crore (up from ₹105 crore)
The wearables category declined over 40% YoY, impacting overall topline momentum.
As of March 31, 2025:
Equity shares: 9.61 crore
Series A CCPS: 5,10,000 shares (1:1 conversion)
Series B CCPS: 17,269 shares (convertible into 2000 equity shares each)
Series C CCPS: 66,57,791 shares (conversion ratio linked to next funding round)
If Series C converts at even a 1:1 ratio, total shares could rise to ~14 crore, diluting EPS significantly.
| Share Price (₹) | Market Cap (₹ Cr) | P/E Ratio |
| 500 | 7,000 | 109 |
| 700 | 9,800 | 153 |
| 1,000 | 14,000 | 218 |
Given this, even applying a 60x P/E multiple , the valuation would be around ₹4,000 crore — translating to ~₹300 per share for 14 crore shares.
The last funding round was priced at ₹741 per share. IPO pricing above this will require clear growth visibility and margin improvements.
Declining revenue for three straight years
Sharp slowdown in wearables
Dilution risk from Series C CCPS
High P/E multiples relative to growth prospects
Minimal overseas revenue contribution
While boAt has returned to profitability, sustaining its ₹10,000 crore+ valuation will be difficult without reviving growth, especially in wearables. Investors may demand either a discount to the last funding round price of ₹741 or strong growth signals before justifying a premium.
