In the dynamic landscape of consumer electronics, Noise emerges as a beacon of innovation, driven by the vision and dedication of its founders, Gaurav and Amit Khatri. Their journey, as unveiled in The Barbershop with Shantanu Deshpande, founder of The Bombay Shaving Company, underscores the essence of entrepreneurship, perseverance, and an unwavering commitment to excellence.
1] Noise originated in 2014. Gaurav and Amit Khatri, driven by their entrepreneurial instincts and insight into emerging trends, set out to reshape the consumer electronics industry in India. Their journey illustrates how Noise has grown from modest beginnings to become a prominent market player, with a business valued at Rs 2,000 CR.
2] The genesis of Noise can be attributed to an insight shared by Gaurav and Amit – the need for products that seamlessly integrate technology into everyday life. This vision laid the foundation for their foray into the world of e-commerce, where they sought to bridge the gap between technology and lifestyle.
3] Their initial ventures included experiments with various product categories, ranging from phone covers to accessories. These early endeavours provided invaluable insights into consumer behaviour and market dynamics, laying the groundwork for future success.
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4] Gaurav Khatri and Amit Khatri, cousins, co-founded Noise. Before launching the brand, Gaurav worked as a commercial pilot, while Amit was involved in the textile business, collaborating to design and market textiles for brands like Zara and H&M. In 2011-12, Gaurav began learning entrepreneurship under Amit’s mentorship. Despite starting with limited capital, their resourcefulness and Gaurav’s passion for gadgets, internet, and e-commerce enabled them to build the brand and understand consumer needs. Initially, Amit operated from Hong Kong. When Gaurav expressed a desire for a phone cover unavailable in India, they ordered it from the US and later sourced more in bulk and sold them through eBay in 2014. Gaurav explains that their adaptable approach provided the freedom to experiment without worrying about success or failure, allowing him to tailor their strategy according to consumer needs.
5] Later, they realised that despite sourcing 40,000-50,000 phone cases and estimating an annual revenue of 30-40 crores, their revenue wasn’t increasing significantly due to the short lifespan of mobile phones. This taught them two lessons: understanding the actual price their consumers were willing to pay and avoiding the complexity of product variations. When they had to clear their inventory, they had to sell the plastic covers at the lowest price to recyclers because they were non-biodegradable.
6] Transitioning to the gadget market, they encountered established players like Xiaomi and OnePlus. Despite initial doubts and demotivation about the success of Indian electronics brands, they focused on solving simpler problems rather than complex ones. They began with wired headphones, even though they were already available in the market. Initially, they hesitated because Flipkart had millions of ratings, but they chose the wearable market, launching a wearable band priced at Rs. 2000-2500. While the Chinese market offered products in black and white, Noise introduced colourful options, which resonated with consumers. The brand’s ethos centred on providing an exceptional customer experience, making customers feel proud of their purchase. They positioned themselves against experienced brands like Samsung, emphasising their customer-centric approach, while competitors focused on low-cost offerings.
7] In 2016, a significant turning point in Noise’s journey occurred when they realised that simplicity and innovation were crucial for seizing new opportunities in the market. This insight prompted a strategic shift towards the growing wearables segment, where they identified a chance to challenge the existing norms.
8] Starting as a simple initiative to provide high-quality everyday products like smartphone covers and accessories, Noise eventually discovered the untapped market of smartwatches, a category Indian brands hadn’t explored before. Noise became one of the pioneering domestic brands to introduce smartwatches to the mainstream market. However, the journey didn’t stop there. Recognizing further growth opportunities, they expanded into the realm of wireless earphones to diversify their product offerings.
9] In December 2023, Noise secured strategic funding from global audio leader Bose, marking its inaugural fundraising endeavour since its inception nearly a decade ago. While specifics of the funding round weren’t disclosed by Noise, insights gleaned from regulatory filings unveiled crucial information regarding the funding amount, post-money valuation, and shareholding structure. According to records from the Registrar of Companies (RoC), Noise authorised the issuance of 2,400 Series A compulsory convertible preference shares priced at Rs 3,45,833 per share, totaling Rs 83 crore. Following this allocation, Noise’s valuation surged to approximately $460 million or Rs 3,820 crore. Bose Corporation, through this investment, secured a 2.17% ownership stake in Noise. Subsequently, Amit Khatri’s stake diminished to 53.44%, Gaurav Khatri retained a 36.23% share, and the company designated 7.25% for its Employee Stock Ownership Plan (ESOP) pool.
10] The founders say Noise’s success is built on prioritising customer satisfaction, aiming to delight consumers in every interaction and establishing itself as a trusted name in consumer electronics worldwide. Gaurav and Amit’s journey showcases the power of ideas and entrepreneurship, while Noise continues its commitment to delivering innovative products that enhance consumers’ lives globally.