Noise Bags $20 Mn Funding From Existing Investor Bose

SUMMARY

Bose first invested $10 Mn in the wearables startup's Series A round back in 2023

The startup's cofounder Amit Khatri said that Bose as a strategic investor is helping Noise in building value for its products and scaling the business

Noise slipped into the red in FY24, reporting a net loss of INR 20 Cr as against a profit of INR 88 Lakh in FY23

Audio products and wearable startup Noise

has raised $20 Mn in fresh funding from its existing investor and global consumer electronics and audio giant Bose.

Noise cofounder Amit Khatri took to LinkedIn to make the announcement. “Thrilled to share that Bose has reinvested $20 Mn in Noise,” Khatri said in the post.

As per company’s filing with MCA, Noise’s board passed a resolution to issue 4974 compulsorily convertible debentures (CCDs) with a face value of INR 10 at a premium of 3,45,833 each to raise INR 172 Cr (172,01,73,342).

Bose first invested in Noise in December 2023 in its Series A round. The $10 Mn funding round valued the startup at about $426 Mn.

The latest funding values the company slightly up from the last round at $473.8 Mn.

“Last year, we welcomed Bose Corporation as a strategic investor and their belief in our vision helped us push the boundaries in wearables and audio innovation… This isn’t just about funding—it’s about building value, scale, and experiences that truly resonate with the next generation of consumers” added Khatri.

Founded by Amit and Gaurav Khatri in 2014, Noise initially started by selling smartphone cases and accessories. It later pivoted to selling smart wearables and wireless headphones. The startup sells its products via its website, ecommerce marketplaces Amazon and Flipkart, quick commerce platforms like Zepto, and retail stores.

Last month, the Delhi NCR-based startup announced its entry into the Gulf Cooperation Council (GCC) region as part of its international expansion plans. For this, Noise has partnered with Dubai-based distribution company Lime Concepts to enter the GCC region under the first phase of its global expansion plan.

Noise acquired AI startup SocialBoat in May last year to enhance AI-powered fitness and health features for its wearable devices.

On the financial front, Noise slipped into the red in the financial year 2023-24 (FY24). It posted a net loss of almost INR 20 Cr in FY24 as against a net profit of INR 88 Lakh in the previous fiscal year. Meanwhile, its revenue from operations was almost flat at INR 1,430.9 Cr as against INR 1,426.5 Cr in FY23.

The latest development comes at a time when Noise’s rival boAt is gearing up for its IPO. The Aman Gupta-led startup recently filed the draft papers for its IPO via the confidential filing route. This is its second attempt at going public after it aborted IPO plans in 2022.

boAt is said to be eyeing INR 500 Cr IPO at a valuation of over $1.5 Bn. It has roped in ICICI Securities, Goldman Sachs, JM Financial and Nomura as the lead bankers for its public issue.

It is pertinent to note that India’s wearable device market declined 11.3% year-on-year in 2024, as per International Data Corporation (IDC). Smartwatch shipments fell sharply by 34.4%, while earwear showed modest growth of 3.8%.