Bose Corporation’s Investment in Noise: A Major Step in the Wearables Industry

Bose Corporation has made a significant foray into the Indian wearables and hearables market with a substantial investment of Rs 172 crore ($20 million) in Noise in 2023. This funding represents the second capital infusion for the Gurugram-based enterprise since it was established.

Details of the Investment

According to regulatory filings sourced from the Registrar of Companies (RoC), the board of Noise has authorised a special resolution to issue 4,915 compulsory convertible debentures at a price of Rs 3,45,833 each. This initiative aims to gather Rs 172 crore or $20 million. The newly issued debentures feature a nominal interest rate of just 0.001% and are set to be converted into equity shares in the future.

Utilisation of Funds

The financial resources will be directed towards various strategic business functions. Noise intends to utilise the funds to manage operational costs, expand its business, enhance brand visibility, and satisfy working capital needs, alongside other approved activities by the board.

Company Valuation and Market Position

According to estimates from Startup Superb, this latest investment has solidified a flat round valuation of the company at $470 million—an increase from its Series A valuation of $460 million. Notably, Bose stands as the sole external investor in Noise.

Noise’s Product Offerings

Noise has carved a niche for itself by offering a range of products, including smartwatches, wireless earphones, and speakers, available through various e-commerce platforms and its own website. The brand also commands a considerable portion of the smartwatch market. This latest injection of funds from Bose follows a significant product advancement for Noise, marked by the introduction of an audio device featuring “Sound by Bose.”

Financial Performance

Noise has reported a revenue of Rs 1,431 crore with positive EBITDA for the fiscal year ending March 2024. The company faces competition from boAt, a prominent consumer electronics brand that recently filed a Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India. boAt has disclosed a revenue of Rs 3,122 crore for FY24 along with a 45% reduction in losses, which totaled Rs 53.5 crore during the same period.