Andy Fathollahi characterized Incipio Technologies Inc. as “the famous case maker that makes everything and cases.”
Maybe not everything, but the Irvine-based company has expanded its portfolio in recent years, mainly with the acquisitions of Tavik Industries LLC in 2012 and specialist Braven LC in 2013.
“It’s strategic; it’s all about growing the core business,” said Fathollahi, Incipio’s founder and chief executive. “Tavik is an authentic apparel brand that (now) manufactures cases that are sold at Apple [stores] worldwide. The Braven acquisition gave us Bluetooth technology … and a lot of knowledge … that we’ve used to enhance the Incipio side of the business. It all comes back to where we think the mobile device business is going, and—it’s growing. It needs smarter, more connected accessories, whether they’re speakers or camera cases or smart battery banks, we think that all of these products need to be better integrated in the mobile device, and they need to enhance that user experience in some way.”
Award
Fathollahi was among five entrepreneurs honored at the Business Journal’s 13th Annual Excellence in Entrepreneurship Awards luncheon on March 18 at the Hotel Irvine Jamboree Center (see related stories, pages 1, 4, 6 and 10). He was unable to accept the award in person—his wife, Karen, filled in at the podium—due to a trip to the Computers Unlimited CU Exposed trade show in London. He also attended meetings regarding Braven’s new product line, including the BRV-X water-resistant Bluetooth speaker and app-enabled BRV-BANK, a backup battery for mobile devices.
“It’s going really well,” he said. “We got tremendous feedback—knock on wood—we are very lucky; people love the products.”
Fathollahi emigrated from Iran to Orange County when he was 5. He graduated from Mater Dei High School in Santa Ana and got a business degree from St. Edward’s University in Austin, Texas.
He founded Incipio in 1999 with a $500 loan from his parents. He declined to discuss the private company’s revenue. It was ranked No. 12 on the Business Journal’s 2011 list of Orange County’s fastest-growing private companies with about $18 million in annual sales, a 326% growth rate over two years. It is now estimated to see about $60 million in annual sales.
The company employs 270 people spread over a 110,000-square-foot headquarters at the Irvine Spectrum and at offices in Europe, China and Braven’s Provo-based outpost in Utah.
Tavik, which saw sales of $2 million in 2012, has grown tenfold since the acquisition, according to Fathollahi.
“The brand is just screaming,” he said. “We expect 200% growth this year.”
Tavik got a boost under Fathollahi’s ownership: Staff size went from three to 14, and he invested in marketing, trade shows and product line development, such as Tavik phone cases sold at Apple Inc. stores.
“The accessories part of the business has done incredibly well,” he said. “It didn’t exist before we acquired it, and now it’s about 50% of that brand’s revenue.”
Braven, the most recent acquisition, was less than 3 years old when Incipio bought it.
“It had an amazing reputation for high-quality audio,” he said. “I was meeting the team at different trade shows and events, watching them do things right and in a different way.”
The deal helped Incipio get its hands on Bluetooth low-energy technology, which it used to create the “Focal Camera Case” for iPhone 5. The case transforms the smartphone into a camera with zoom and shutter buttons.
Mobile Wallet Case
Other ideas have been generated in-house, such as the “Cashwrap Mobile Wallet Case” for the iPhone 5. The case activates Isis Mobile Wallet, an app that processes payments at participating retailers with just a tap of a smartphone.
Fathollahi said he is still in the process of integrating the back end of all three companies, such as accounting and warehousing. His day-to-day challenges these days include managing growth, keeping employees happy, “just the basic things in a growing business, the same things that have kept me up 15 years ago keep me up now. Nothing changed.”
So do his parents think the $500 loan paid off?
“I don’t know,” he said. “I think my mom just wants me to call her more.”
