Lava International, a prominent player in India's smartphone market, is poised for substantial financial growth in the upcoming fiscal year commencing April 1, 2025. Managing director Sunil Raina unveiled ambitious plans to secure an estimated Rs 500-600 crore through avenues such as an initial public offering, private equity infusion, or a combination thereof. These funds are earmarked for bolstering manufacturing capacities, intensifying research and development endeavors, and enhancing marketing strategies.

Raina underscored the imperative need for additional capital over the next two years to solidify Lava's foothold in the sub-Rs 30,000 smartphone segment, with a lofty target of capturing 25-30% market share—an ambitious aspiration for an indigenous brand. With recent strides in transitioning towards in-house device design, the company is poised to scale up manufacturing and R&D efforts. Despite initial hiccups in qualifying for incentives under the government's production-linked incentive scheme, Lava remains committed to leveraging this initiative for growth.

In FY24, Lava witnessed a remarkable twofold increase in revenue, although specific figures were not disclosed by Raina. To sustain this momentum, the company aims to bolster average selling prices of its devices, particularly amid declining volumes in the mass market segment, as indicated by analysts. Armed with a portfolio of six smartphones, predominantly featuring 5G support, Lava is strategically positioned to capitalize on evolving market dynamics.

In a strategic diversification move, Lava has ventured into the burgeoning smartwatch category, unveiling two budget-friendly offerings priced below Rs 3000. Additionally, a premium smartwatch, priced under Rs 5,000, is slated for release later this year. Raina emphasized the superiority of Lava's smartwatches, citing durability, accuracy, and data security as key differentiators. Leveraging its extensive distribution network and retail presence, the company aims to achieve a significant milestone of 0.5 million units in smartwatch sales within the first year.