India slowdown sparks global noise; CEO Gaurav Khatri on IPO caution

Photo: Instagram/@go_noise

Noise, a popular homegrown brand known for its wearables, has expanded its business to the Gulf Cooperation Council (GCC) region, starting with the United Arab Emirates (UAE). This move comes as the wearables market in India is facing a slowdown. Despite the market challenges in India, Noise remains focused on growth and has no immediate plans for an initial public offering (IPO), according to founder and CEO Gaurav Khatri.

Noise’s expansion into the UAE is part of its larger global strategy. Khatri explained that the company has always had a vision to go global. In the UAE, around 50 percent of the population is under 25 years old, which aligns perfectly with Noise’s core customer base. Khatri also mentioned that the company plans to enter other markets with similar demographics to India.

To help grow in the GCC region, Noise has teamed up with Virgin Megastore, a well-known retail chain in the UAE, to use its physical stores across the region. Noise has launched its full range of wearables and audio products in the GCC market.

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Even though the company is expanding globally, Khatri emphasized that the slowdown in India’s wearables market is just part of the business cycle. Since Noise is largely bootstrapped, Khatri said the company’s goal is to build a sustainable business in the long term, regardless of what’s happening in the Indian market. He also mentioned that Noise has reached a stage where it is ready to go global.

India’s Wearables Market Struggles

The wearables market in India has faced a tough time in 2024. The number of wearable devices sold in India dropped by 11.3 percent compared to the previous year, totaling 119 million units. This decline marks the first fall in the market in years and comes as the consumption of wearable devices slows down. Data from the International Data Corporation (IDC) shows that the market has also shrunk for three straight quarters, including an 8.7 percent drop in the December quarter.

Noise, the second-largest brand in India’s wearables market, has also been affected by this slowdown. The company posted a loss of Rs 20 crore in FY24, though its revenue remained stable at Rs 1,426 crore.

However, Khatri remains optimistic about Noise's future. He believes that international markets will be a major driver of growth in 2025. The company is also working to increase its presence in India’s tier 2 and beyond markets while focusing on launching more high-end products to stimulate growth.

Khatri also pointed out that some companies in the wearables market failed because they relied on unsustainable pricing. According to him, Noise has managed to stay strong in the market by focusing on innovation and understanding customer needs. He believes this focus will help the brand grow, even as other companies struggle.

A Look at Noise’s History and Future Plans

Noise was founded in 2014 by brothers Amit and Gaurav Khatri. Initially, the company sold smartphone covers and accessories. However, in 2018, Noise shifted its focus to smartwatches and wireless earbuds, which have since become its key products.

Khatri stated that Noise is committed to building a sustainable business and that the company is not rushing to go public through an IPO. He emphasized that the company doesn't need to give exits to investors right now. The decision to go public will be made when the time is right for the business.

Over 90 percent of Noise’s products are still made in India, and this will not change as the company expands internationally. Noise generates more than 70 percent of its sales through online channels, with the remaining sales coming from offline retail.

Will Global Expansion Help Noise Grow?

While Noise’s entry into international markets is seen as a positive move, analysts are uncertain about the future of the Indian market. According to Vikas Sharma, a senior analyst at IDC India, the Indian wearables market is expected to remain flat in 2025. He predicts that the decline in the smartwatch category will offset the growth in the earwear segment.

In conclusion, Noise’s expansion into the GCC region marks an important milestone in the brand’s journey. While the Indian market faces challenges, the company remains optimistic about its future, focusing on global growth, innovation, and reaching new customers in India’s smaller cities.

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