Last week, gadget and wearables brand Noise announced a strategic funding from global audio giant Bose. With this, the Gurugram-based company marked its maiden fundraise after nearly a decade of its launch.
While the company didn’t provide details of the round, TheKredible has sifted through its regulatory filings to decode crucial details such as funding amount, post-money valuation and shareholding pattern.
The board at Noise has passed a special resolution to issue 2,400 Series A compulsory convertible preference shares at an issue price of Rs 3,45,833 per share for a consideration of Rs 83 crore, its regulatory filings sourced from the Registrar of Companies (RoC) show.
Following the allotment of the Series A shares, the Amit Khatri led company has been valued at around $460 million or Rs 3,820 crore.
With this investment, Bose Corporation has acquired a 2.17% stake in the company. Amit Khatri diluted his stake to 53.44% while Gaurav Khatri’s stake stands at 36.23%. The firm also has an ESOP Pool of 7.25%.
Visit TheKredible for Noise’s complete cap-table.
Noise sells smartwatches, wireless earphones and speakers through e-commerce platforms and its own website. The company controls 27.6% market share in the smart watch category in the first half of 2023, according to data published by International Data Corporation (IDC).
Noise has been growing at a scorching pace in terms of scale for the past few fiscal years and its revenue from operations spiked 79.8% to Rs 1,426 crore in FY23 from Rs 793 crore in FY22. As per TheKredible, the firm’s profit declined 97.25% to around Rs 1 crore in FY23 from Rs 35.5 crore in FY22 due to investment in local manufacturing and R&D.
It competes with boAt, Fire-Boltt, and MI, among others. boAt is the largest player in the segment with Rs 3300 crore in revenue but the company posted its first ever loss of Rs 129 crore in the last fiscal (FY23).