Lava in Talks to Raise ₹500–600 Crore via PE in Pre-IPO Round

Homegrown smartphone maker Lava International is in advanced talks with private equity investors to raise ₹500–600 crore by offering a 10–15% stake, likely structured as a pre-IPO funding round. The talks involve two Indian and one U.S.-based PE firm, with due diligence expected to wrap up in three to four months

Meanwhile, its previously planned IPO, initially slated for FY 2026, has now been pushed to FY 2027.

Strategic Use of Capital

The funds are earmarked for ambitious growth, including:

• R&D investments for in-house device design
• Marketing and brand-building
• Manufacturing expansion

These moves support Lava’s aim to capture 25–30% market share in the sub-₹30,000 smartphone segment, a bold target for a domestic brand.

Performance & Valuation Insights

Market data highlights Lava’s rising momentum:

• Lava grew 156% year-on-year in the sub-₹10,000 segment, and 96% overall between April and June 2025, powered by models like the Blaze, Storm, and Agni series.
• If the equity dilution proceeds as planned, the company’s valuation may land between ₹3,300 crore (lower band) and ₹6,000 crore (upper band).

Trajectory Toward IPO

This round appears to be a bridge toward an eventual public listing. Lava’s managing director has confirmed it is open to a combined approach—private equity now, followed by an IPO later in FY 2027.

Notably, Lava previously filed a DRHP in 2021 but shelved its IPO when market conditions turned volatile.

Big Picture: Competing in a Crowded Market

Lava is carving a niche as the only surviving Indian smartphone brand among giants like Samsung, Xiaomi, and Apple. It’s expanding both domestically and internationally—with existing capacities, strong offline presence, and forays into wearables such as the ProWatch line.

Leadership restructuring (e.g., adding independent directors) reinforces investor confidence in its governance.The Times of India

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