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Audio and wearables startup boAt is downsizing its wearables business, a top executive at the company told , as it battles slowing growth and declining market share in an increasingly competitive segment. market share slipped to 14% in 2023 from nearly 19% in the previous year while rivals Fire Boltt and Noise secured the top two positions, as per estimates by market intelligence firm IDC. boAt also faced stiff competition from Titan and Pristyn Care’s BeatXP, prompting it to reassess its playbook.

“The average selling price over the last two years has tanked by about 68-70% in this space which isn’t sustainable. You can now buy a smartwatch for 999. It’s unheard of anywhere in the world," boAt’s co-founder and CEO Sameer Mehta told , adding that the slump in market growth has pushed the company to “take it slow".



Founded in 2016 by Mehta and Aman Gupta, boAt’s earphones and smartwatches rose in popularity marked by its affordable price point, successfully penetrating a country with price-conscious users. However, the lack of entry barriers in both categories led to the emergence of multiple players, making user retention a task. boAt is backed by marquee investors such as Warburg Pincus and Qualcomm Ventures and has secured upwards of $170 million in private funding till date at unicorn valuation.

In October 2022, the consumer electronics firm shelved plans to raise 2,000 crore through an initial public offering citing tough market conditions. Also read: The pu.

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