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
Summary Table
| Category | Details |
|---|---|
| Funding Round | ₹500–600 crore via PE; 10–15% stake dilution |
| IPO Timeline | Delayed to FY 2027 |
| Valuation Range | ₹3,300 crore – ₹6,000 crore |
| Fund Use | R&D, marketing, manufacturing |
| Growth Highlights | 156% growth in sub-₹10K segment (Q2 FY25) |
| Strategic Moves | Expanding product range, leadership restructuring |
