Devialet, the French audio flagship, announces a fundraising of 30 million euros. The operation promises to be a last chance one, the startup having recently encountered significant difficulties.
A declining turnover
At the origin of iconic speakers, Devialet has created a thunderous 2010s. The brand, however, initiated a conciliation procedure with the Paris commercial court during the summer. A situation which can be explained by various factors, notably the arrival of giants like Sonos or Bose on the consumer market, as well as the loss of the exclusivity of the high-end image, which had made it successful.
Some also felt that its move downmarket, with less premium products like a soundbar and headphones, worked to its disadvantage. Likewise, the firm struggles to attract customers back once they have purchased a high-end speaker. Added to this are economic difficulties, such as the yellow vest crisis and the disturbances in Hong Kong, report The Echoes.
As a result, Devialet’s turnover fell, and its accounts went into the red. She is now counting on this new fundraising to replenish the coffers and move forwardand this should involve various projects.
New strategies
First of all through a strategic repositioning, by reaffirming its status as a company dedicated to premium. The recent launch of the Astra amplifier for 16,000 euros illustrates this dynamic. Devialet also wants to establish more partnerships with luxury brands, to strengthen its prestigious image.
The startup also has the ambition to develop its international presence, particularly in China, the United States and the Emirates. Objective: double its number of points of sale. The diversification of its distribution channels is also favored via, for example, partnerships with different hotels. Devialet will also equip the Alpine A290 electric car. She is also in discussions with Jay-Z’s Roc Nation label to potentially uncover a highly renowned muse.
Unanswered questions
Jacques Demont, CEO of Devialet since January 2024, ensures that the company is close to profitability. An accelerated backup procedure was even requested on November 25, 2024. Despite everything, this new fundraising presents two potentially worrying signals. On the one hand, no new investor joined the adventure, the operation relying solely on the historic shareholders; on the other, the amount of 30 million euros is lower than previous raises.
The stakes are therefore high. Devialet must at all costs transform this round of funding 30 into a real springboard, rather than a temporary lifeline.
- Devialet, the French flagship of audio products, has just raised 30 million euros.
- A welcome sum, as the company encountered significant difficulties, pushing it to initiate a conciliation procedure.
- It plans to use these funds to strengthen its international presence, establish new partnerships and refine its image.
