**Lava’s Expansion Plans Amidst Market Challenges**
Lava, a homegrown smartphone and accessories brand, is seeking to raise up to ₹500 crore ($58 million) in funding to enhance its market presence before a potential public listing. The company aims to achieve a 10% market share by 2030, despite facing stagnant sales and market share.
### Funding and Public Listing Efforts
– **Current Funding Goals**: Lava is in discussions with investors to secure funds for expansion.
– **Previous Valuation**: In September 2021, during a previous listing attempt, the company was valued at ₹14,000 crore ($1.7 billion).
– **IPO Strategy**: Executive Director Sunil Raina stated that an initial public offering (IPO) will be considered once the company reaches a certain scale.
### Market Performance and Challenges
– **Sales Figures**: Lava sold approximately 1.5 million smartphones in 2024.
– **Revenue Decline**: For the fiscal year ending March 2024, consolidated revenue fell by 25% to ₹3,646 crore ($426 million), with net operating profit dropping 85% to ₹11.6 crore ($1.4 million).
– **Management Issues**: The company faced setbacks, including the arrest of its former managing director in a money laundering investigation.
### Future Outlook
– **Growth Expectations**: Raina anticipates a 10% annual growth in device shipments and revenue for FY25.
– **Sales Channels**: Currently, 80% of sales are from offline channels, but the company plans to enhance marketing efforts to reach a broader audience.
– **Investment in R&D**: Future investments will also focus on software research and development for improved SEO.
As Lava navigates these challenges, will its funding efforts and strategic initiatives lead to a successful market turnaround?
**FAQ: What are Lava’s plans for future growth?**
Lava plans to raise funds for expansion, aiming for a 10% market share by 2030, with a focus on increasing marketing efforts and investing in R&D.
**Meta Description**: Lava seeks ₹500 crore for expansion, targeting a 10% market share by 2030. Discover their growth strategy and future plans.
