Irvine startup Peri Inc. has high hopes for its second-generation iPhone charger and speaker case as the company looks to expand accessory offerings and attract its first institutional investment round.
The company, launched in 2014 by former Broadcom engineering head Mohammad Tabatabai and private equity veteran Michael Hsu, will start shipping the Duo Slim for iPhone 7 models in June and a version for 7 Plus owners in July.
The device, which can be used as a high-fidelity detachable speaker and provide 100% extra battery life to a smartphone, will cost about $150. It’s the only product as of press time to provide both functions and gain Apple certification, which carries significant influence.
“We’re the first and still the only we’ve seen in this market,” Hsu said during a recent demo at the company’s headquarters near John Wayne Airport. “If we can own that for a few years, we think there’s $100 million in revenue potential or more.”
The company wants to mimic the success story of another Orange County smartphone case maker. Tustin-based Mophie Inc., an early entrant in the battery case segment, was sold for $100 million last year to rival Zagg Inc. in Utah.
Coveted Logo
The Apple Inc. designation took more than six months to achieve as engineering counterparts at the Cupertino-based tech giant provided feedback on the design of the Duo Slim, including the single grill and the overall sleek, modern and minimalistic look. Â
The certification carries a high bar for Peri and other made-for-iPhone licensed companies. The Slim, which utilizes the Apple lightning connector, went through vigorous testing to gain the MFi logo, according to spokesperson Erica McCarthy.
“Not every battery case or iPhone accessory can use the coveted logo,” she said in an email. “Our ultimate goal is to be in Apple stores (brick and mortar and online), and to do so we need to make sure our products use the highest standards Apple does.”
Some of the Slim changes became proprietary intellectual property for Peri, which gained key insights through the certification process, although the device won’t be carried in Apple stores.
“We’re working to get into Apple stores for future versions,” Hsu said.
The company will instead rely primarily on a distribution agreement announced in January with Orlando-based VOXX International Corp., which posted sales last year of about $680 million. It also plans to sell the product on Amazon.com.
Peri employs about 10 people and uses contract manufacturers in China.
Diversification
The latest rollout comes as the company plans to diversify its product suite and raise $3 million to $5 million in a Series A round. The Business Journal reported about two years ago that the company raised $1 million in a seed round from backers that included former Pittsburgh Steelers defensive star and University of Southern California alumnus Troy Polamalu, New York Giants offensive lineman and fellow Trojan Khaled Holmes, and Minneapolis-based Rhymesayers Entertainment, a long-standing indie hip-hop studio behind national touring acts, such as Atmosphere and Dilated Peoples.
Peri is negotiating with several family offices to secure the funding, rather than with traditional venture capitalists, in order to control more of the strategic and product road map.
“We think we can close with a family office,” Hsu said.
The money would boost research and development and product design, efforts that have included early work on prototypes for a portable speaker that screws into a head lamp, and a sound bar that’s scheduled for release this year.
Irvine-based Vizio Inc. was the U.S. leader in soundbars last year, a title it’s retained since 2014.
Peri debuted the MicroPack in January at CES, the world’s largest consumer electronics show, which is held annually in Las Vegas. The device provides a rapid charge to any micro-USB port, using wireless charging technology developed by San Jose-based Energous Corp.
“We can leverage this platform into portable and home devices,” said Tabatabai, who left Broadcom in early 2015 after a 15-year run at the Irvine-based chipmaker, where he oversaw engineering teams for Ethernet, Power-over-Ethernet, and optical networking systems.
A burgeoning partnership with Broadcom Ltd., which was formed last year after Singapore-based Avago Technologies Inc. acquired Broadcom for $37 billion, could further Peri’s strides in the home audio market.
Both companies are part of the Open Alliance, an organization established in late 2011 by Broadcom and three other chipmakers to promote Ethernet in cars.
Tabatabai said, “Broadcom has earmarked a few people in our design team for research products.”
