Boat closes $60-million financing through convertible notes, postpones IPO

Direct-to-consumer (D2C) audio products and wearables brand Boat has closed a $60-million, or about Rs 500-crore, financing through convertible notes from existing investor Warburg Pincus and new investor Malabar Investments, and has formally withdrawn its listing plans.

Boat has put a minimum valuation cap of around $1.2 billion as part of this funding, people aware of the terms of the deal told ET. This means whenever Boat closes its next round of funding or goes for an initial public offering (IPO), Warburg and Malabar – an India-focused investment fund – will get these notes converted into equity at a business valuation of $1.2 billion even if other investors come at a higher price.