Popular consumer electronics startup boAt recently filed its papers for a Rs 1500 crore IPO — prompting intense scrutiny of its internal processes. The company has seen its attrition rate rise rapidly with hundreds of employees leaving over the past three years. boAt reported an attrition rate of 34% among full-time employees for FY25 and saw another 31 employees leave within the three months of the current financial year.
“Our ability to implement our business strategy will depend, in large part, on our ability to attract, train, motivate and retain highly skilled personnel. Competition for senior management and other key personnel with technical and industry expertise in our industry is intense, and we may not be able to recruit and retain suitable persons to replace the loss of any of our senior managers in a timely manner,” read an excerpt from their DRHP.
The company also admitted that its success “depended substantially on a number of key management personnel” including the management team and operational workforce. boAt said that an inability to retain these workers or recruit highly skilled technical personnel “could adversely affect our business”.
Attrition rate plummets
Data shared by the company indicated that the attrition rate rose 28% over the past year — reaching 34% among full-time employees for the financial year ended March 31. At least 107 employees had departed boAt in FY23 while another followed by 132 in FY24 and 161 in FY25. The DRHP revealed that 31 employees had quit within the first three months of FY26. The company had a total workforce of 553 employees, along with 407 contractual workers as of June 30.
“Although we have not experienced any strikes or labor unrest in the past, we cannot assure you that our relations with our employees shall remain cordial at all times and that employees will not undertake or participate in strikes, work stoppages or other industrial actions in the future,” boAt added.
Co-founders step down
According to the DRHP, co-founders Sameer Ashok Mehta and Aman Gupta stepped down from their executive roles just 29 days before the company filed for its IPO.
