Consumer appliances maker Atomberg Technologies has reported a robust 31.4% surge in operational revenue for FY 2023-24, reaching ₹848 crore, compared to ₹645 crore in the previous fiscal year. However, the company’s net loss also widened by 46.3% to ₹202 crore from ₹138 crore, primarily attributed to employee stock ownership plan (ESOP) grants, management bonuses, and fundraising expenses, according to the company’s co-founder, Sibabrata Das.
“Our operational Ebitda has increased significantly. If we look at FY22, there were no major ‘other non-cash items’ like ESOP and bonuses. In FY23 and FY24, the difference between operating Ebitda and profit after tax (PAT) numbers is largely because of these non-performance items,” said Das.
The company’s operational earnings before interest, taxes, depreciation, and amortization (Ebitda) improved to a loss of ₹22 crore in FY 2023-24 from a loss of ₹49 crore the previous year, reflecting a marked improvement in core operations. Das expressed optimism regarding profitability, stating that Atomberg remains on track to achieve operational profitability by the end of the current fiscal year.
Atomberg, founded by IIT Bombay alumni Sibabrata Das and Manoj Meena, reported a net loss of ₹39 crore in 2021-22. This year, material costs represented 66% of total expenses, with employee and marketing costs also accounting for significant spending. The company invested approximately ₹70 crore in a new research and development (R&D) facility in Pune, which will continue to receive investments as part of Atomberg’s commitment to innovation.
Revenue from offline channels currently constitutes 70% of Atomberg’s sales, with the remaining 30% from online channels, including ecommerce platforms Amazon, Flipkart, and the company’s direct-to-consumer website. Atomberg’s products are now available in about 30,000 multi-brand outlets across India, with retail reach growing by nearly 20% year-on-year.
In 2023-24, Atomberg’s fan business accounted for ₹841 crore of its revenue, while the mixer grinder and smart lock segments contributed the remaining ₹7 crore. The company aims to increase the revenue share from non-fan segments, particularly from its mixer grinder line, which is projected to represent 4-5% of total revenue by fiscal year-end. Over the next 12-18 months, Atomberg plans to diversify into new product categories such as water purifiers and other kitchen appliances.
Atomberg’s recent $86 million funding round in May 2023, led by Singapore’s Temasek and Steadview Capital with support from Trifecta Capital, Jungle Ventures, and Inflexor Ventures, facilitated early investor exits and partial divestment for existing investor A91 Partners. This brings Atomberg’s total funding to $128 million, valuing the company at $358 million as of June 2023, according to Tracxn.
Das shared additional insights on the company’s quick-commerce strategy, stating, “The company went live on Zomato-owned Blinkit earlier this year and views quick commerce as a significant driver for its fan business in the future, especially during summer months.”
Atomberg is eyeing further growth opportunities and is considering a secondary transaction-led funding round next year to facilitate additional investor exits.
