Turning up the Noise: Inside Noise’s Journey

Humble Beginnings - Noise 1.0

It all started back in 2014 when Gaurav Khatri and his brother launched Noise with a pretty simple product - phone covers all because Gaurav could not find a high-quality cover for his iPhone.

They began as a small phone accessory business but quickly realised that phone covers were a low-margin, crowded business with low barriers to entry. The brothers really needed to level up their business game and they did!

The Big Shift to Noise 2.0

By 2016, Apple was leading the world into wearable tech with the Apple Watch and AirPods, and Noise saw an opportunity. Fitness watches and earbuds were coming in hot but with hefty price tags.

So, Noise pivoted to smartwatches with the promise of delivering high-quality features without breaking the bank.

Then came 2020, and everything changed.

The pandemic made people health-conscious overnight leading to a big spike in the demand for fitness gadgets. Smartwatches went from niche to mainstream, and Noise was up for the challenge.

By 2021, India’s smartwatch sales had exploded from a modest 5 lakh units in 2015 to a whopping 1.2 crore. Noise captured 27% of the Indian smartwatch market, becoming the country’s top brand.

And by 2022, Noise ranked third worldwide, right behind giants like Apple and Samsung. Noise showed the world that a small bootstrapped startup from India could punch way above its weight.

Success by the Numbers:

• FY 2021 Revenue: ₹370 crore
• FY 2022 Revenue: ₹792 crore
• FY 2023 Revenue: ₹1,426 crore

For a brand that started with phone covers, that’s one hell of a trajectory!

But no journey ever comes without its own set of challenges.

Back in 2016, making smartwatches locally felt like a dream too big to achieve. Fast forward to now, the market is packed with over 80 competitors, including big names like Boat and Boult.

And while Noise is still crushing it, there’s a risk that they rely heavily on smartwatches, which bring in 80% of their revenue. Diversifying into other key products will be the key to staying in the game.

Over the years, Noise became more than just a smartwatch company. In 2018, they launched two hit products - the ColorFit and ColorPro smartwatches.

Then they moved into wireless earbuds. In 2022, they launched Noise Labs, where they started developing the Luna smart ring, a device aimed at tracking health and wellness on a new level.

Their innovation seems to be paying off as last year, they sold a 2.4% stake to Bose, a global giant in this industry, putting their valuation at a cool $420 million.

Noise has now come a long way from just selling phone covers, and their journey is far from over. In getting there they have carved out a loyal customer base.

The future you ask? It looks bright as the company continues to redefine the standard for what affordable and innovative tech can be.

However, the real question remains: Can Noise transform from a trendsetter into a true market leader?

Sources:

Financial Express
Economic Times
Inc42
Economic Times
AJVC
MobiGyaan
Times of India