We usually see starting a business as a leap of faith. Many entrepreneurs think if they have a passion for what they are doing, it is enough for sustainable growth. But that’s not true.
Gaurav Khatri, the founder of India’s leading smartwatch brand Noise, in an interview, offered valuable insights into the art of building a sustainable business without any external funding.
Noise is a bootstrapped startup that has now grown into one of India’s leading smartwatch brands.
The Founders & Their Beginning with Phone Covers
Noise was co-founded by Amit Khatri and Gaurav Khatri, two brothers. They recognized a gap in the Indian consumer electronics market.
Initially, they were not focused on wearables but on mobile accessories. They noticed the rising trend of personalization in mobile phones at that time.
So, they decided to capitalize on it by launching customized phone cases. This venture helped them understand the Indian e-commerce market, supply chain management, and consumer behavior.
This decision allowed the company to generate revenue early on, laying the foundation for future expansion.
The Birth of ‘Noise’
The brothers’ ultimate vision was to create a brand that was not just another electronics manufacturer.
They were envisioning a tech-driven company that could provide high-quality, affordable alternatives to global giants like Apple and Samsung.
They had a strong belief in the potential of wearables in India in the coming years, which led them to pivot into smartwatches.
Smartwatches were one such category that was still emerging in India at the time (during 2013-14).
When they started, they focused more on innovation, affordability, and user experience. As a result, Noise quickly became one of India’s leading brands in the wearables industry.
They competed against both domestic and international competitors. Noise held a 27.4% market share in the smartwatch segment in Q3 of the previous year.
This showcases Noise’s rapid growth and dominance in the industry.
The Importance of Business Fundamentals
If you closely look at failed startups, they mostly fail because they lack a solid grasp of fundamental business principles.
Amit and Gaurav gave more importance to basic business fundamentals such as:
- Financial management
- Product Quality
- Supply chain and operations
- Building an aspirational brand
Because these elements determine whether a business can scale sustainably. These abilities of Gaurav and Amit helped them to transition from a phone accessories brand to a leader in the smartwatch industry.
Staying Consumer-Centric
Noise has always focused on consumer needs. The founders personally interacted with customers to understand their preferences.
This consumer-centric approach helped them a lot in their success. This ensured that product iteration was aligned with market expectations.
One best example is when Noise entered the smartwatch market in India. They didn’t just create another fitness tracker. Instead, they focused on features that mattered to Indian consumers, such as:
- Affordability
- Long battery life
- High-quality design
- Advanced health tracking features
This understanding of what consumers truly wanted positioned Noise as a strong alternative to international brands.
Noise’s Commitment to ‘Make in India’
Noise has made significant steps in localizing its smartwatch production. They actively participate in the government’s “Make in India” initiative.
They have reached milestones in manufacturing a substantial number of smartwatches within India.
The company has been continuously working to increase the percentage of its smartwatches that are produced domestically.
However, like many other electronics brands, Noise still imports components and finished products, from manufacturing hubs in China.
It’s likely that a portion of their operations involves assembly within India, even if some components are sourced externally. This approach helps Noise to balance cost-effectiveness with national manufacturing initiatives.
The Role of COVID-19 in Scaling the Business
We saw most businesses struggle during the COVID-19 pandemic. But Noise saw an opportunity.
Health awareness was on the rise during the pandemic, and smartwatches and fitness trackers became more popular for monitoring well-being. Noise recognized this shift and doubled down on:
- Product development
- Marketing campaigns
- Expanding inventory to meet demand
This smart move helped Noise grow from a ₹150 crore revenue company to a ₹1,000 crore+ brand in a very short span.
Bootstrapping vs. Venture Capital: The Noise Approach
What makes Noise different is that they did not rely on venture capital. They chose to bootstrap. This move had both advantages and challenges.
Advantages of Bootstrapping:
- Full control of business decisions. Since there were no external investors, Noise had the freedom to make long-term decisions without pressure for quick returns.
- They did not spend heavily on aggressive marketing. Noise focused on organic growth and profitability.
- They were not forced to pivot frequently to please investors. As a result, they maintained a clear brand vision.
Challenges of Bootstrapping:
- Compared to other well-funded competitors, they had limited resources. Noise had to be strategic with spending.
- Growth took longer. Because they had to reinvest profits rather than relying on external funding.
- Without financial backing, every business decision carries a higher level of risk.
Even though they had limited resources, they successfully outperformed many heavily funded competitors. They proved that strategic execution can trump excessive spending.
Expanding Market Presence
Over the years Noise has built a strong presence across multiple sales channels. The company’s sales strategy includes:
- E-commerce marketplaces – A significant portion of their sales come from platforms like Amazon and Flipkart.
- Offline retail expansion – Noise is aggressively increasing its presence in general trade and modern trade outlets.
- Direct-to-consumer (D2C) channels – They sell directly through their website to maintain better control over branding and customer experience.
- Quick commerce – Leveraging fast delivery platforms to reach customers quickly and efficiently.
It is true that the online sales remain a dominant force for Noise. But they are steadily strengthening their offline presence.
This allows consumers to experience their products in person before making a purchase.
Competing Against Giants
Noise’s biggest competitor in India is Boat.
The boat is another popular wearable and audio brand. If you closely observe, Boat has leveraged aggressive marketing and funding. But Noise took a different approach:
- Focus on R&D and tech innovation
- Investing in in-house product development
- Prioritizing software integration and ecosystem-building
Noise is not trying hard to outspend competitors. They are focused on building a differentiated product that offers tangible value to consumers.
Celebrity Endorsements and Brand Positioning
One of the key milestones for Noise was onboarding Virat Kohli as a brand ambassador. However, the founders believe that a celebrity alone doesn’t guarantee success.
The product itself must deliver value. Because consumers today are more aware and selective, they won’t buy a product solely because a famous face promotes it.
This is how Noise has transformed from a small phone accessories brand to India’s third-largest global smartwatch company.
This is a great example for entrepreneurs to understand the power of strategic execution.
Yes, funding can accelerate growth, but sustainable success comes from understanding the market, staying consumer-focused, and making data-driven decisions.
Aspiring entrepreneurs in India can learn valuable lessons from Amit and Gaurav’s approach and apply them to their own ventures.
