According to the International Data Corporation (IDC), among the top five ready-to-wear brands, three places are currently occupied by Indian brands / Representative image | Photo credit – BOAT website

India is the third largest market for true wireless headphones across the world, and local brands account for over 70% of the accessory’s shipments in the country. Among other names such as pTron and Noise, BoAT dominates the Indian TWS space, with a 46% market share in the growing segment. After striking a chord with consumers, BoAT got investors’ ears when it announced an initial public offering, but stock buyers may have to wait longer.

Prefer private investment to uncertainty

This year, BoAT was supposed to raise Rs 2,000 crore through a sale of shares during its stock market debut, which it has now canceled. The decision to postpone the issuance came in light of the volatility affecting the market and because BoAT received Rs 500 crore from private investors. In addition to existing BoAT financier Warburg Pincus, a new player, Malabar Investments, also contributed in its latest round of funding.

Reports suggest that under the terms of this infusion, Malabar and Warburg Pincus will be able to convert preferred stock into equity at a $1.2 billion valuation, whenever BoAT goes public. BoAT CEO Vivek Gambhir told The Economic Times that they would go public when conditions are more conducive to growth.

Negative market response behind suspended IPOs?

This is not the first time that a startup has opted out of an IPO in favor of private investment. Previously, Snapdeal and Oyo also pushed their stock issues for months, and PharmEasy as well as Droom are also startups that have suspended IPOs. Besides market volatility, negative sentiment among investors is also reflected in the fact that five of the 10 worst IPOs last year were tech startups.

With 23 Indian startups awaiting their market debut in the coming quarters, the fact that those that have been listed are trading at significantly lower prices is cause for concern.