Atomberg Technologies, the consumer appliances manufacturer, has announced a remarkable 31.4% increase in its operational revenue, reaching Rs 848 crore for the fiscal year 2023-24, compared to Rs 645 crore in the previous year. However, the company also faced a significant net loss, which expanded by approximately 46.3% to Rs 202 crore from Rs 138 crore during the same period.
Sibabrata Das, cofounder of Atomberg, explained that the losses over the past two financial years were driven by new employee stock ownership plan (ESOP) grants, management bonuses, and expenses related to fundraising activities.
Das shared with ET that the operational earnings before interest, taxes, depreciation, and amortisation (EBITDA) showed improvement, with losses narrowing to Rs 22 crore in 2023-24 from Rs 49 crore the year before. He elaborated, “Our operational EBITDA has shown considerable growth. In FY22, we did not incur significant ‘other non-cash items’ like ESOP and bonuses. The disparity between operating EBITDA and profit after tax (PAT) figures in FY23 and FY24 can largely be attributed to these non-performance-related costs.”
Looking ahead, Das stated that Atomberg is aiming for operational profitability by the end of the current fiscal year.
Founded by IIT Bombay graduates Das and Manoj Meena, Atomberg previously reported a net loss of Rs 39 crore for the fiscal year 2021-22. In 2023-24, material costs accounted for about 66% of the company’s total expenses, with employee and marketing costs also representing considerable portions. A notable investment was the establishment of a research and development (R&D) center in Pune, which cost approximately Rs 70 crore and is expected to attract ongoing investment in R&D.
Currently, 70% of Atomberg’s revenue is generated through offline channels, while the remaining 30% comes from online platforms, including e-commerce giants like Amazon and Flipkart, as well as the company’s own direct-to-consumer website. Although Atomberg does not operate its own retail stores, it has a presence in about 30,000 multi-brand outlets across the country, marking an approximate 20% year-on-year growth in reach.
For the fiscal year 2023-24, Atomberg’s fan business generated Rs 841 crore, with the mixer grinder and smart lock segments contributing the remaining Rs 7 crore. The company aims to increase the proportion of its non-fan business revenue, targeting a 4-5% contribution from the mixer grinder segment by the end of this fiscal year.
In the coming 12 to 18 months, Atomberg is also preparing to expand into new product segments, including water purifiers and various kitchen appliances. Additionally, Das mentioned that the company might explore a secondary funding round next year to facilitate exits for existing investors.
In May 2023, Atomberg successfully completed an $86 million funding round, led by Singapore’s sovereign wealth fund Temasek and Steadview Capital, with contributions from Trifecta Capital, Jungle Ventures, and Inflexor Ventures through a combination of primary and secondary issuances. This round also allowed early angel investors to exit, with existing investor A91 Partners partially selling its stake. Atomberg has raised a total of $128 million to date, achieving a valuation of $358 million as of June 2023, according to Tracxn.
Discussing the company’s foray into quick commerce, Das revealed that Atomberg launched its services on Blinkit, owned by Zomato, earlier this year, highlighting quick commerce as a key growth area for its fan business, particularly during the peak summer season.