Gurugram-based bootstrapped startup Noise has logged a 39.4X decline in its net profit to INR 88 Lakh in the financial year 2023-23 (FY23) from INR 35.5 Cr in the previous fiscal, driven by a sharp rise in expenses.
Operating revenue of the wearable devices and smartphone accessories brand jumped 1.8X to INR 1,426.5 Cr in FY23 from INR 792.8 Cr in FY22. Total income, too, jumped 1.8X to INR 1,432.6 Cr in FY23 from INR 800.8 Cr in FY22.
The startup primarily generates revenue from sales of earphones/headphones, speakers and smartwatches. It sells the products on its website and online marketplaces such as Amazon and Flipkart.
Meanwhile, total expenses surged 1.9X to INR 1,431.6 Cr in FY23 from INR 752.6 Cr in FY22. At INR 1,048.9 Cr, the purchase of stock-in-trade accounted for the biggest chunk of total expenses during the year under review. Expenses under the head stood at INR 657.1 Cr in FY22.
Employee benefit expenses stood at INR 50.5 Cr in FY23 as against INR 21.3 Cr in FY21. Further, Noise spent INR 284.9 Cr on advertising in FY23, a 128% jump from INR 89.1 Cr in FY22. The startup counts Neeraj Chopra, Virat Kohli and Tapsee Pannu as its brand ambassadors.
Founded by Amit Khatri and Gaurav Khatri in 2014, Noise initially sold smartphone cases and accessories. Later, it pivoted to selling smart wearables and wireless headphones. Noise directly competes with Aman Gupta’s boAt.
Recently, Noise formed a joint venture with Il Jin Electronics to boost the manufacturing of smart wearables in India. A subsidiary of Amber Enterprises India, Il Jin Electronics will offer its expertise in manufacturing, resources and innovative capabilities to Noise to boost its presence in the country.
According to a study, India is set to become one of the largest wearables markets by the end of 2023, accounting for 26% of the total units shipped around the world.
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