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Bose doubles down on Noise with $20 Mn investment

EntrackrEntrackr · 10m ago
Bose doubles down on Noise with $20 Mn investment
Medial

Exclusive: Bose doubles down on Noise with $20 Mn investment The board at Noise has passed a special resolution to issue 4,915 compulsory convertible debentures at an issue price of Rs 3,45,833 each to raise Rs 172 crore or $20 million. After entering the Indian wearables and hearables space with a strategic investment in Noise in 2023, Bose Corporation has made a fresh investment of Rs 172 crore ($20 million) in the gadget and wearable brand. This marks the second funding round for the Gurugram-based company since its inception. The board at Noise has passed a special resolution to issue 4,915 compulsory convertible debentures at an issue price of Rs 3,45,833 each to raise Rs 172 crore or $20 million, its regulatory filing sourced from the Registrar of Companies (RoC) shows. The issued debentures will carry a nominal interest rate of 0.001% and will eventually be converted into equity shares at a later stage. The company plans to utilize the funds to cover operational expenses, expand, enhance brand visibility, meet working capital needs, and support other business activities as approved by the board, the filing added. According to Entrackr’s estimates, the latest investment comes in as a flat round, valuing the company at $470 million — a slight uptick from its Series A valuation of $460 million. For the uninitiated, Bose is the only external investor in Noise. Noise sells smartwatches, wireless earphones, and speakers through e-commerce platforms and its own website. The company also holds a major share of the smartwatch market. The fresh investment from Bose follows a major product milestone: Noise’s launch of an audio device powered by “Sound by Bose.” Noise reported a revenue of Rs 1,431 crore with EBITDA profitability for the fiscal year ending March 2024. It competes with the consumer electronics brand boAt, which recently filed DRHP with the Securities Exchange Board of India under the confidential route. boAt reported Rs 3,122 crore of revenue during FY24 with a 45% reduction in losses to Rs 53.5 crore in the same period.

boAt and Noise’s growth decline in Q3 amid market slowdown: IDC report

EntrackrEntrackr · 1y ago
boAt and Noise’s growth decline in Q3 amid market slowdown: IDC report
Medial

India's wearable device market saw a second consecutive quarterly decline, dropping 20.7% year-over-year to 38 million units in Q3 2024, as per IDC's India Monthly Wearable Device Tracker. As per the report, this decline was driven by fewer product launches and cautious inventory management, even during the festive season. Notably, the average selling price (ASP) for wearables increased for the first time since Q2 2019, rising 1.3% to $21.3 in Q3 2024. While wrist bands saw a 48% decline to 56K units in Q3 2024, smartwatches and earwear saw 44.8% and 7.5% drops in the number of shipments. Smart watch and earwear’s total shipments stood at 9.3 million 28.5 million units respectively. With a 32% market share, boAt is the top smart wearable company (including watches and earphones). Noise, Boult, Realme, and Oppo (Oppo + OnePlus) had 11%, 9.7%, 5.8%, and 5.5% market shares, respectively. However, boAt saw a 14.5% decline in Q3 2024 compared to Q3 2023, and Noise faced a 19.2% decline during the same period. Notably, Boult and Realme recorded 32.5% and 56.5% growth, respectively, in the quarterly period. Breaking down further, boAt led in the true wireless stereo (TWS) category with a 36.8% market share, while Noise was on top in the smartwatch segment with a 27.4% market share. The smart ring segment continued to expand in Q3 2024, with over 92,000 units shipped and a 16.2% YoY drop in the average selling price (ASP) to $162.1. Ultrahuman led the market with a 36.8% share, followed by boAt (Imagine Marketing) at 20.5%, and Pi Ring at 16.3%. The rising appeal of smart rings is reflected in decreasing prices and the anticipation of new product launches in the coming quarters. Market leaders boAt and Noise also saw slow growth during the last fiscal year. While boAt's revenue decreased by 5% to Rs 3,122 crore in FY24, Noise’s revenue from operations grew a modest 0.4% to Rs 1,431 crore in the last fiscal year. However, both companies, which are based out of Gurugram, maintained EBITDA profitability in FY24.

Bose-funded Noise revenue declines 24% to Rs 1,048 Cr in FY25

EntrackrEntrackr · 17d ago
Bose-funded Noise revenue declines 24% to Rs 1,048 Cr in FY25
Medial

Following a flat scale in the fiscal year ended March 2024, gadget and wearables brand Noise saw its operating scale decline by 24% in FY25. However, the company’s bottom line turned positive during the period, supported by a deferred tax gain of Rs 47 crore. Noise’s revenue from operations declined 24% to Rs 1,048 crore in FY5 from Rs 1,384 crore in FY24, its annual financial statements accessed from the Registrar of Companies show. Founded in 2014 by Amit and Gaurav Khatri, Noise offers smartwatches, wireless earphones, and speakers via e-comm platforms as well as its own website. It also commands a significant share of the smartwatch market. Income from the sale of wearables was the sole source of operating revenue for the firm in the last fiscal year. The company earned Rs 17 crore from non operating sources, including interest on current investments, which pushed its total income to Rs 1,066 crore. For the gadget and wearables brand, the cost of material procurement was the largest cost centre, which accounted for 68% of overall expenditure. This cost stood at Rs 725 crore in FY25 and declined 23% year on year in line with the operating scale. The firm’s employee benefit expenses fell 12% to Rs 71 crore in FY25, including Rs 6.5 crore towards ESOP costs. Noise also cut marketing and advertising spend by 37% to Rs 180 crore. Warranty, freight, legal, and other overheads took the company’s total expenditure to Rs 1,067 crore in FY25, a 25% decline from Rs 1,417 crore in FY24. As operations scaled down in FY25, with both revenue and expenses declining by nearly 25%, and aided by a Rs 47 crore deferred tax gain, Noise reported a profit of Rs 3.2 crore. Its ROCE and EBITDA margin stood at 7.31% and 1.67%, respectively. However, the Bose-backed company remained EBITDA positive (Rs 18 crore). On a unit level, the Gurugram-based firm spent Rs 1.02 to earn every rupee in FY25. At the end of March 2025, Noise reported total current assets of Rs 467 crore, including Rs 81 crore in cash and bank balances. In April last year, global audio major Bose doubled down on its investment in Gurugram-based Noise and infused $20 million at a valuation of $470 million. This followed its initial $10 million investment in December 2023. Prior to this, Noise had remained a bootstrapped company. Noise’s competitor boAt reported operating revenue of Rs 3,073 crore in FY25 and returned to profitability with a net profit of Rs 60 crore during the period. The company is also gearing up for its public listing as it filed its updated DRHP to raise Rs 1,500 crore via initial public offering (IPO). The challenge of sustaining growth rates in the electronic wearables market is underlined by the sluggish period booth Noise and boAt have experienced in the past year. Brand building has failed to deliver the kind of premiums they hoped for, and competition from new offerings is always snapping at their heels. Outside of a few brands, the categories remain heavily commoditised as far as the mass markets go. Making it all the more worse is the varying degrees of dependence these brands have on ecommerce platforms, which, while they allow them to scale fast, are making it increasingly hard to gain market share. An IPO from the firms looks like a tough challenge in this situation, especially in terms of the valuations they are likely to get vis a vis expectations in say, 2022-23.

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