What Went Wrong With boAt? | The See-Saw Tale of Aman Gupta's boAt

Added: 2026-06-01

[00:00:00]In 2022, Aman Gupta was arguably the coolest entrepreneur in India.

[00:00:06]His brand boat was the number two wearable company in the world right behind Apple and his 2,000 cr IPO plans had just been given Seby's full green light. But in late 2022, it all flipped for him when the IPO was quietly withdrawn. Bo's overall revenue slipped from its peak and the company plunged from profitability straight into a brutal 129 cr net loss in FY23. Then just 29 days before filing fresh IPO documents in 2025, both founders Ammon Gupta and Samir Ma quietly resigned from the executive roles. Ammon's story actually begins in 2013 when fresh after an MBA and a prior experience of running an audio distribution family business he joined Harmon International the parent company of JBL as sales director to gain some exposure to the audio industry and saw that India's market was flooded with either overpriced brands or cheap unreliable knockoffs. So after his stint to test the waters, he approached another audio brand, House of Mali for exclusive distribution rights. It was here that he first crossed paths with another entrepreneur, Samir Meta, who two separately approached House of Mali for the same rights. But instead of picking between them, House of Mali told both to team up, leading the duo to co-found Imagine Marketing Private Limited and secure the rights. However, lacking the capital to buy inventory and scale up, they together began pitching their plan to over a 100 investors only to be rejected every time. Left with no outside funding, they were forced to bootstrap with 30 lak rupees of their own savings. And it was during this hands-on struggle of selling Mali's products that they spotted the massive market gap for affordable, durable audio gear, inspiring them to launch boat in 2016, where they began selling high margin accessories directly on Amazon to fund their ultimate goal of launching headphones. But it was only in September 2016 that a big push came after Reliance Jio's launch that made mobile data much cheaper and helped board grow faster as more people moved online and it crossed the 100 crore revenue mark in just its first 2 years. They even got institutional funding of 60 cr from fireside ventures in 2018 and expanded aggressively into speakers, earbuds and wireless headphones. But Aman Gupta's real master stroke was positioning boat as a fashion brand instead of an electronics brand and further positioned it like a community where customers started calling themselves boat heads.

[00:02:42]With the pandemic again shifting a lot of consumers online, their revenue doubled from 701 cr in FI20 to 1.5,000 cr in FI21 and almost 3,000 cr in FI22.

[00:02:55]Then a series C funding round led by Warberg Pinkers of 500 crores put boat into unicorn status with a valuation of 11,500 crores. But here's something the boat story doesn't tell you. When you're scaling a brand, the real war isn't the product page, it's the warehouse. If you're a manufacturer, retailer, wholesaler, one wrong stock count means dead inventory or lost customers. This is where ODO steps in. An all-in-one business management software trusted by over 15 million worldwide. Odo's inventory app shows you exactly what you have, where it is, and what it's worth across every warehouse in real time.

[00:03:31]From one intuitive dashboard, you get the overview of your stock level, bills, and orders with forecasts and auto replenishment for every ingredient when quantity drops. Set up smart storage rules once and products move to the right shelves on their own. Switch between FIFO and LEO, first in first out or last in first out, or average costing methods to optimize the product life cycle. The integrated barcode scanner runs quality checks and auto adds incoming supply to inventory. Whether 10 or 10,000 follows every product from purchase to sale because UDO isn't just an inventory tool. It's a full business suite with 45 plus applications starting at just 580 rupees per user per month.

[00:04:10]The best part, the first step is completely free for life. Hosting and support included. Click the link in the description or pin comment and let Odo run your operations while you build the next big brand. Coming back to Bo's so-called success story. The massive billiondoll plus valuation hid a deep secret. Bo was not actually winning through deep product technology. It was winning through sourcing, packaging, pricing and perception. Most of its products were being designed and branded for India but manufactured in China.

[00:04:42]Like several other brands notably Dr. Trust this model initially worked for them in the beginning because it allowed boat to scale fast without heavy manufacturing investment but it also meant that the actual product gap between brands could shrink very quickly and that is exactly what started happening as newer brands too got Chinese products and entered the same category of earbuds and watches with lower prices. So as the market got crowded, their customers started comparing more brutally. And once a 799 rupee product and a 1,300 boat product fell almost the same, the decision to buy was based on price. This was the first problem. Bo had built a brand, but it had not built a moat that could stop another company from selling almost the same thing for less. The second problem was that B's fastest growing new category smart watches was never as strong as it looked from the outside.

[00:05:37]You see, during the pandemic, budget smart watches boomed because consumers wanted fitness and health features. And with Bolt entering the race at that perfect time within a short period, its wearable segment alone was bringing in revenues of 900 cr. But the problem with a 2,000 rupees smartwatch was that many consumers bought it once out of curiosity, used the features for a few weeks and then slowly stopped caring.

[00:06:02]While the serious users moved towards bigger brands with stronger ecosystems like Apple or Samsung. So board got trapped in the middle. Cheaper brands below and premium ecosystem brands pulling from above. By this time, the smart watch category itself had started slowing down and both variable revenue crashed from around 900 cr level levels to nearly 330 cr by FY25. Then their audio category also became harder to defend because earbuds and headphones were becoming increasingly commoditized as players like OnePlus, Realme, Nothing, JBL and Sony were sitting on stronger technology or ecosystem trust.

[00:06:40]While Indian competitors were fighting aggressively in the same affordable zone, boat's old edge of affordable, stylish, and bass heavy was no longer rare. And once every brand started offering the same promise, both had to spend more time just to stay visible because influencer campaigns, IPL visibility, celebrities and digital ads could create attention but could not guarantee loyalty. In FY23, B's advertising spend at cross 400 cr a massive jump from the earlier 100 cr range. This is where the marketing machine that once made boat powerful started becoming expensive. Meaning the problem was that marketing was now doing the job that product differentiation should have done. And the irony is that the same 400 cr if spent on R&D could have built the mode that boat lacked. On top of that, because there was no ecosystem, every boat customer could leave the brand at the next purchase without losing anything. For example, Apple users stayed inside Apple because AirPods worked better with iPhones while Samsung users had Galaxy integration. At the same time, quality complaints too began rising with users complaining about earbuds failing early, charging cases not working properly and poor customer services. The made in India positioning also became more complicated because boat had built itself as a proud Indian brand. But in reality, its raw materials and components were still heavily imported from China and Taiwan.

[00:08:07]See, even Apple manufactures in China.

[00:08:10]But what makes it different is that Apple owns the chip. the software and the ecosystem and board did try to fix this. In 2022, they entered a 50/50 joint venture with Dixon Technologies to manufacture audio products. And in their IPO filings, they do claim to manufacture up to 75% products right here in India. Then came the databach reports where personal details of more than 75 lakh customers were allegedly leaked, adding a new layer of doubt. By now, Vote was dealing with weaker smartwatch demand, commoditized audio, quality complaints, supply chain perception issues, and trust damage. The financial impact soon became visible. In FY23, the company reported a net loss of around 129 cr. Though by 24, the revenue dipped slightly by 5% to 3,122 cr. But Bo had cut its losses nearly in half and turned operationally profitable, making a comeback with around 60 cr profit. the following year but it came mainly from cutting costs on inventory and not from any significant rise in demand. In fact they even reported a negative operating cash flow of 100 cr in the first quarter of 26 and this mattered because boat was preparing once again for an IPO after their previous attempt had been postponed despite SEBI approval. At that time, PTM's post IPO stock crash of 70% was to blame as other new age companies like Udan and Farmhazy also postponed their listing plans. 3 years later, both tried again and this time the plan was to raise around 1 and a half,000 cr. But just before fresh IPO documents were to be filed, Aman Gupta and Samir Meta stepped down from executive roles and moved into non-executive positions. The company defended by calling it professionalization, saying it was moving towards professional management under a new CEO. Shockingly, however, the red herring prospectus reportedly revealed major red flags. Auditors found mismatches between numbers given to banks and numbers in the company's own books for three straight years.

[00:10:11]Short-term loans were quietly being used to fund long-term needs. The company paid excess remuneration to its directors in FY23, breaching prescribed limits. While Kaha PTE a Singapore tech firm boat acquired was flagged by auditors as potentially unable to pay its own bills. Moreever out of the 1 and a half,000 cr that they were trying to raise 1,000 cr was OFS offer for sale.

[00:10:36]Meaning the money was going directly to existing shareholders and not into the company's growth. And here's the part most people missed. Back in 2022 when the IPO fell through private equity Wahberg and Malabar had put money as convertible notes at a discounted valuation. So the IPO was basically their exit door with Wabber Pinkas alone cashing out 500 cr. Ultimately these financial and structural red flags forced boat to defer its IPO once more in January 2026. All in all, boat is still number one in truly wireless and earwware and maintains its leadership position in the Indian variable market with a commanding 29% share. Its founder Raman Gupta however has moved on launching offbeat a content and creatorled platform focusing on AI raising 100 cr in seed funding leaving the company he launched orphaned. Bisbos limmerick ammon launched boat with a cheer. Its sale shot up skyhigh in a year. Then rivals crept near. Losses sparked some fear, but boat bounced back, still leading the tier. You will also find these sources listed in a video description section.