Another start-up has withdrawn plans for an initial public offering (IPO) because of volatile market conditions.

Imagine Marketing, the parent company of wearables brand boAt, which had floated draft papers for a Rs 2,000 crore IPO, has decided not to proceed with the offering, joining others such as PharmEasy and Droom Technologies that took a similar decision.

Instead, Imagine Marketing has raised Rs 500 crore ($60 million) from existing shareholder Warburg Pincus, and new investor Malabar Investments.

In August, API Holdings, the parent of PharmEasy, withdrew its draft red herring prospectus (DRHP) submitted to the Securities and Exchange Board of India (Sebi) citing “market conditions and strategic considerations’’. Instead, it decided to raise funds through a Rs 750-crore rights issue.

Recently, the online automobile marketplace Droom also withdrew its Rs 3,000- crore IPO.

These developments come at a time valuations of newage companies have moderated, even as the listed entities have seen a drop in share prices with the end of the mandatory lock-in period for pre-IPO investors.

It is learnt that the boAt parent is likely to reconsider IPO plans in the next 12-18 months.

In a statement announcing the fundraise, the company said the move will fuel expansion into the fast-growing smartwatches category while cementing leadership in personal audio.

“The company is raising Rs 500 crore from its existing shareholder, an affiliate of Warburg Pincus, a leading global private equity fund and new investor MalabarInvestments,” the statement added. These funds have been mobilised through the private placement of preference shares.

Imagine Marketing added that the fresh investment will enable the company to accelerate plans to attain leadership in the smartwatch category, and scale up its business across channels and geographies.