Bootstrapped Startup Noise’s Profit Rises To INR 36 Cr In FY22, Sales Up 126%

Noise's Valuation Touches $400 Mn Post $10 Mn Funding From Audio Giant Bose

SUMMARY

The earphones and smartwatch manufacturers’ revenue from operations jumped 126% to INR 792.7 Cr in FY22

Noise’s total expenses also surged 145.6% to INR 756.7 Cr in FY22 from INR 308.9 Cr in FY21

As per an IDC report, Noise had a market share of 13.8% in the Indian wearable market in Q3 of 2022

At a time when most of the Indian startups are in the red, Gurugram-based bootstrapped startup Noise reported a 8% rise in its net profit to INR 35.5 Cr in the financial year 2021-22 (FY22) from INR 32.8 Cr in FY21 as its sales more than doubled during the year.

The earphones and smartwatch manufacturers’ total income jumped over 2.2X to INR 804.9 Cr from INR 352.4 Cr in FY21. Revenue from operations climbed 126% to INR 792.7 Cr in FY22 from INR 350.5 Cr in FY21.

The startup primarily generates revenue from sales of earphones/headphones, speakers, and smart watches. It sells the products on its own website and marketplaces such as Amazon and Flipkart.

On the other hand, Noise’s total expenses also surged 145.6% to INR 756.7 Cr from INR 308.9 Cr in FY21. At INR 677.4 Cr, purchase of stock-in-trade accounted for the biggest chunk of total expenses during the year under review. Expenses under the head stood at INR 238 Cr in FY21.

The startup spent INR 21.5 Cr on employee benefit expenses during the year under review as against INR 14.3 Cr in FY21. Employee benefit expenses comprise employee salaries, PF contributions, gratuity and other employee welfare benefits. An increase in employee benefit expenditure is a clear indication that the startup increased its headcount. As per its LinkedIn page, it has 370 employees.

Noise spent INR 89.5 Cr on advertising in FY22, a 128% jump from INR 39.3 Cr in FY21. The startup counts the likes of Virat Kohli and Tapsee Pannu among its brand ambassadors.

Founded by Amit Khatri and Gaurav Khatri in 2014, Noise initially sold smartphone cases and accessories. Later, it pivoted into sales of smart wearables and wireless headphones.

Noise directly competes against Aman Gupta’s boAt, which saw its revenue from operations jump to INR 2,872.9 Cr in FY22. However, its profit plummeted 20.6% to INR 68.7 Cr.

As per an IDC report, while boAt dominated the wearables market in India with 32.1% share in the third quarter of 2022, Noise clinched the second spot with a share of 13.8%. In Q3 of 2021, Noise’s market share stood at 7.6%, whereas boAt had a market share of 42% in that quarter.