The Khatri brothers, cousins, have built Noise by remaining bootstrapped for over eight years. But now, India's biggest wearable brand needs to build a war chest to sustain its high decibel growth
Amit Khatri (sitting) and Gaurav Khatri, Co-founders, Noise
Image: Amit Verma
Â
Gurugram, 2021. The squeaky sound morphed into a belligerent noise, recall cousins Amit and Gaurav Khatri. It was sometime during the beginning of July 2021. With a 28.6 percent market share in the second quarter (April-June) of 2021, Noise had maintained its pole position as the biggest smartwatch brand for five straight quarters. It was a high-five moment for co-founders Amit and Gaurav, who had founded Noise in December 2014, and had started their entrepreneurial journey by selling smartphone cases. Over the next few years, they diversified into hearables and wearables.
The sweet sound of success didn’t last long though. The company, which clocked a little over ₹24 crore in sales in FY17, was gripped with two pressing problems. First, the ASP (average selling price) of mobile cases had dipped, which meant that churning higher volumes would lead to same value growth. Second, the brothers were still dealing with products. Noise was not a brand. Consequently, the duo exited the accessories business by the end of 2017, and rolled out premium TWS (true wireless stereo) products. This time, the idea was to build an aspirational brand.
The move, however, bombed. The market for premium products was niche, and aggressive pricing by multinational rival brands changed the competitive landscape. The duo then rolled out smartwatches, and there was no looking back. The bootstrapped brand, which had been profitable since inception, almost doubled its operating revenue and closed FY21 at ₹350 crore. The brothers were ecstatic. Holding on to the crown for 15 consecutive months called for a loud celebration.
Â
(This story appears in the 31 March, 2023 issue of Forbes India. To visit our Archives, click here.)