boAt is entering Malaysia through Binny Bansal's Opptra, targeting a $2.7 billion market dominated by Chinese players. The expansion comes as boAt faces declining India revenue — down from Rs 3,376 crore in FY23 to Rs 3,073 crore in FY25 — stalled IPO plans, and auditor-flagged compliance concerns.

Struggling at home, boAt enters booming Malaysia market: Will the gamble pay off?

Audio and wearable electronics maker boAt is entering the Malaysian market as the company aspires to expand into South Asian countries. The company has partnered with Binny Bansal’s latest franchising and licensing venture, Opptra, to roll out its product in Malaysia’s heavily China-dominated mobile accessories market.

boAt, which cracked the Indian market with a digital-first strategy, is once again betting on digital-first retail in Malaysia. The company is entering the market with its wireless earphones and power banks.

The challenges boAt faces in Malaysia

Gaurav Nayyar, CEO of boAt, said in a statement that Malaysia is an exciting entry for the brand into Southeast Asia as they look to take boAt global. “With a young, digital-first consumer base and strong e-commerce adoption, the market aligns perfectly with where our brand thrives.”

Nayyar and boAt are betting on the opportunity in the booming Malaysian electronics market. The country’s mobile phone accessories market,which includes earphones, power banks, and wearables, stands at $2.7 billion and is expected to almost double in the next 5-6 years.

While there is ample opportunity, boAt faces tough competition from already established global players in the Malaysian market. The premium segment is heavily dominated by Apple, Samsung, and Sony. The value segment, where boAt will be focused, is dominated by Chinese majors such as Xionmi, Oppo, Realme, and Huawei, each with about 8 to 10 per cent market share.

The Malaysian mobile accessories market in the value segment is dominated by Chinese players, known for their cost-effective manufacturing and export dominance. Malaysia’s imports from China in this category stood at $403 million in 2025.

The biggest challenge for boAt, which once relied heavily on China-manufactured products, is countering established Chinese players in the Malaysian market.

Struggles at home- falling revenue

While boAt is planning a global expansion, its India business is not doing so well. On one hand, the company is facing a business decline, and on the other hand, its IPO plans are not materializing as intended.

In FY23, boAT’s revenue peaked at Rs 3,376 crore. While the company has reported its highest-ever annual sales, it has also reported a loss of Rs 129 crore. In the previous two years, the company had reported PAT of Rs 68 crore and 86 crore despite much lower sales.

Since FY23, the boAt revenue has been in decline for the past two fiscal years. The updated DRHP shows that in FY24, its revenue came down to Rs 3,117 crore and further slipped to Rs 3,073 crore in FY25. While in FY25, boAt reported a PAT of Rs 61 crore, its declining revenue in the intensifying competition puts pressure on its IPO plans.

Struggles at home- IPO plans stall

There have been several assumptions that boAt has paused its IPO plans, but the company has refuted the claims, stating that the slowdown is intentional as it is focusing on profitability. The company had filed an updated draft red herring prospectus with SEBI in October 2025.

As the company is already stalling the listing plans to achieve profitability, to make matters worse, its statutory auditor flagged a series of financial and regulatory compliance red flags in the updated DRHP.

The auditors found that quarterly returns or statements filed with banks and financial institutions did not match the company’s own books of account for the period from 2023 to 2025.

The auditors also flagged concerns over boAt subsidiaries’ ability to meet their existing liabilities in FY23 and FY24. Other concerns raised by the auditor include director remuneration exceeding legal thresholds, arrears in undisputed statutory dues, the absence of daily data backups on Indian servers, and non-verification of plant, property, and equipment in FY23 due to a change in the verification policy.

boAt has slowed down its IPO plans to increase profitability before listing. At the same time, the company is entering a growing but competitive market, which requires significant capital investment and a possible cash burn. And amid all this, it faces a revenue decline and ever-increasing domestic competition.