Noise expands globally amid India slowdown; not in a IPO rush, says CEO Gaurav Khatri

Noise eyes global expansion amid wearables market slowdown

Homegrown wearables brand Noise has expanded to the Gulf Cooperation Council (GCC) region, starting with the UAE, amid a slowdown in the Indian wearables market. The company is focused on growth and is in no hurry to go for an initial public offering (IPO) in the near term, founder and CEO Gaurav Khatri told Moneycontrol.

The comments come as its biggest rival and market leader, BoAt, plans for a public listing in FY26 and has forayed into the United Arab Emirates market.

"As a brand, the vision was always to go global. In UAE, 50 percent of the population is under 25 years old and that is our core customer base. We are looking to expand into markets with similar demographics as India," Khatri said.

Noise has partnered with retail chain Virgin Megastore in the UAE to leverage its offline network across Gulf Cooperation Council (GCC) markets. It has launched its whole catalogue of wearables and audio devices in the region.

“Market dips and consumption slowing down is all part of the process. And when you are majorly bootstrapped, it is about building a sustainable business. It (global expansion) has nothing to do with what is happening in the country. The brand has reached a level where it can go global,” Khatri said.

The India dip

In 2024, India’s wearable device market declined 11.3 percent from the previous year to 119 million units, the first such fall as consumption slows.

The market also shrunk for the third straight quarter, down 8.7 percent at 25.9 million units in the December quarter of the calendar year, data from the International Data Corporation (IDC) shows.

Growth has flatlined and losses have mounted for companies operating in the wearable space.

Noise, the second largest player with a market share of 12.2 percent, slipped into the red in FY24 with a loss of Rs 20 crore. Revenue remained flat at Rs 1,426 crore.

Khatri expects international markets to be a big growth driver this year, alongside deepening penetration in tier 2 and beyond offline markets. Noise is also focused on innovation and launching high-end devices to spur growth.

“The market is also declining because a lot of businesses were operating with unsustainable pricing and lower ASPs. All those brands are dead now. Noise, as a brand, has not degrown as fast as the market because of our innovation and consumer focus,” he added.

Founded in 2014 by brothers Amit and Gaurav Khatri, Noise began selling smartphone covers and accessories. In 2018, the bootstrapped firm pivoted to smartwatches and wireless earbuds.

“We are focused on building a sustainable business and there is no rush to do the IPO, since we don’t need to give any investors exits. Whenever the time is right for the business to go public, we will go for it,” Khatri said.

Over 90 percent of Noise’s products are manufactured in India and this is not expected to change after the brand’s international foray. The company draws over 70 percent of its business from online channels, with the remaining coming from offline retail.

It remains to be seen if Noise’s entry into international markets kickstarts growth. According to analysts, the Indian market is expected to remain flat in 2025.

“In 2025, the India wearables market is expected to remain flat as the decline of the smartwatch category will offset the earwear segment’s single-digit growth,” said Vikas Sharma, senior market analyst, Smart Wearable Devices, IDC India.