By CIO Insider Team
 

Homegrown wearables brand Noise has raised $20 million from US-based audio equipment major Bose Corporation.

This indicates the firm's second funding round since its establishment. Bose had earlier contributed $10 million in 2023, estimating the firm's value at approximately $420 million.

"Excited to announce that Bose has reinvested $20 million in Noise. This investment goes beyond funding; it's about creating value, expanding scale, and delivering experiences that genuinely connect with the upcoming generation of consumers,” cofounder Amit Khatri stated in a LinkedIn update.

The company reported a net deficit of Rs 20 crore in FY24, in contrast to a net gain of Rs 88 lakh in FY23, while its operational revenue stayed unchanged at Rs 1,430 crore, against Rs 1,426 crore in FY23.

The brand rivals other companies such as Boat, Boult, and Fire-Boltt. Boat, supported by Warburg Pincus and having submitted draft documents for its initial public offering (IPO) to the Securities and Exchange Board of India (Sebi), achieved total revenue of Rs 3,122 crore in FY24 while successfully decreasing its losses by 46 percent.

Younger competitor Boult, which is self-funded, announced a revenue increase of 40 percent to Rs 697 crore in FY24. Nevertheless, its net profit decreased to Rs 2.4 crore by 43 percent.

The fundraising occurs during a period when the shipments of wearable devices in India are experiencing a decline, showing an 8.7 percent year-on-year (YoY) drop in the December quarter to 25.9 million units, marking the third straight quarter of decrease, as per data from market research company IDC India.

As per IDC data, Noise led the smartwatch market with a 24.8 percent share, with Boat and Tata Group's Titan trailing behind.

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In a previous discussion, Khatri mentioned that even with the slowdown, the company is concentrating on growth through premiumization and serving repeat customers.