From Losses to Listing: boAt’s IPO Story & What Founders Should Learn

The boAt's IPO story is a classic case of resilience and reinvention. Founded by Aman Gupta and Sameer Mehta , the brand went from losses to profits, showing how disciplined growth can lead to public success.

The boAt's Journey — Audio Revolution in India

Funded in 2014 by co-founders Aman Gupta and Sameer Mehta under Imagine Marketing, boAt carved a niche in the Indian consumer electronics market by selling audio accessories, wearables and smart device products at mass-friendly pricing.

By capturing youth, influencer marketing and e-commerce hype, the brand became one of India’s most visible D2C success stories.

Profit Turnaround Just Ahead of the IPO

The IPO draft red-herring prospectus shows two consecutive years of losses: ₹129-150 crore loss in FY23, then around ₹79.7 crore loss in FY24. But for FY25, boAt swung into profit: net profit of about ₹61 crore on revenue of ~₹3,073 crore. The company has trimmed its IPO size down to ~₹1,500 crore (from the earlier plan of ₹2,000 crore) as part of its listing move.

But the Warning Lights Are On

Despite the profit turn, boAt’s financials raise questions: revenue is largely flat (you’d expect growth ahead of IPO) and key segments (like wearables) are contracting sharply. Further, attrition among full-time employees rose to ~34% in FY25 — signalling internal culture or talent challenges.

These are red flags for public markets: profitability is one thing, sustaining it is another.

How Lenskart & Other D2C IPOs Stack Up

In contrast, Lenskart (eyewear D2C + omnichannel) turned profitable first — posting net profit ~₹297 crore in FY25, with revenue ~₹6,652 crore. Lenskart’s IPO is valued at ~₹7,300 crore issue size, valuation ~₹70,000 crore (~US$8-9 billion) at upper band. However, even Lenskart’s listing debut was modest: shares opened below issue price and analysts cautioned that the valuation is very high relative to fundamentals.

What Went Right & What Went Wrong (for D2C IPOs)

✅ What went right:

• Strong brand-to-consumer story: both boAt and Lenskart created identity + loyalty.

• D2C footprint + omnichannel (especially for Lenskart) bridging online+offline.

• Achieved “profitability milestone” just ahead of IPO (important signal to markets).

❌ What went wrong (or remains challenging):

• Flat topline growth: For boAt especially, no major upward momentum in revenue.

• Single category dependence: boAt relies heavily on audio accessories (~80% of FY25 revenue) leaving it exposed.

• Talent & culture concerns: boAt’s high attrition and founder withdrawal symptoms are worrying.

• Over-valuation risk: The market is questioning heavy valuations without sustained high-growth or high returns on capital (ROCE).

Lessons for Indian Founders

• Show real growth , not just turnaround: Profits are good, but sustained topline and margin improvement matter more.

• Diversify thoughtfully : Don’t rely on a single product line forever — expand or deepen, rather than being overly exposed.

• Invest in culture early : Talent is the engine behind growth; if attrition is high, growth may stall.

• Manage valuation expectations : IPO timing and valuation must align with market reality – hype only lasts so long.

• Be relentless on unit economics : Good brands must become good businesses — D2C doesn’t mean cash-burn forever.

Final Word

boAt’s upcoming IPO is a milestone — from losses to listing, from niche brand to public company. But the journey from “turning profitable” to “sustaining profitability + growth” is where the real test lies. It’s not just a listing — it’s a lesson for every D2C founder in India. (Also read: Latest IPO News)

Lenskart shows both promise and warning: brand strength doesn’t auto-translate into market rewards unless execution + fundamentals hold up.

For you — the founder in Bharat — the message is: Build for habit, scale with discipline, profit with purpose. Because in a list of D2C IPOs, the winners will not just be brands — but businesses built to last.