Atomberg’s Revenue Rises 31% to Rs 848 Crore

Atomberg Technologies, a leading player in the consumer appliances market, has reported a remarkable 31.4% increase in 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 experienced a 46.3% increase in net losses, which widened to Rs 202 crore, up from Rs 138 crore.

Co-founder Sibabrata Das explained that the increase in losses over the past two financial years can be attributed to several factors, including new employee stock ownership plan (ESOP) grants, management bonuses, and expenses related to fundraising efforts. Notably, the operational Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved, showing a loss of Rs 22 crore in 2023-24 compared to a loss of Rs 49 crore in the prior year.

“Our operational EBITDA has increased significantly,” Das stated. He emphasised that in FY22, there were no significant non-cash items like ESOP and bonuses, whereas in FY23 and FY24, these items contributed to the disparity between operational EBITDA and Profit After Tax (PAT).

Das expressed optimism, stating that the company is on track to achieve operational profitability by the end of the current fiscal year.

Financial Breakdown and Future Plans

During FY24, approximately 66% of Atomberg’s total expenses were related to material costs, with employee and marketing expenses making up substantial segments as well. The company made a significant infrastructural investment by establishing a research and development (R&D) facility in Pune, costing around Rs 70 crore. Das highlighted that this investment is expected to attract further funding for R&D initiatives.

Currently, 70% of Atomberg’s revenue is generated from offline sales, while the remaining 30% comes from online channels, including popular e-commerce platforms like Amazon and Flipkart, along with the company’s own direct-to-consumer website. Although Atomberg does not have its own physical stores, it is present in about 30,000 multi-brand outlets across India, aiming to expand its reach by nearly 20% year-on-year.

For the fiscal year 2023-24, Atomberg’s fan business accounted for Rs 841 crore, with the mixer grinder and smart lock segments contributing the remaining Rs 7 crore. The company plans to increase the revenue share from its non-fan products, particularly targeting a 4-5% contribution from the mixer grinder segment by the end of this fiscal year.

Atomberg is also preparing to venture into new product segments within the next 12-18 months, including water purifiers and additional kitchen appliances.

Recent Funding and Market Position

In May 2023, Atomberg completed an $86 million funding round led by Singapore’s sovereign wealth fund Temasek and Steadview Capital, with contributions from Jungle Ventures, Trifecta Capital, and Inflexor Ventures. This funding round included primary and secondary issuances, allowing some early investors to exit while increasing Atomberg’s valuation to $358 million as of June 2023.

Das also mentioned that Atomberg has recently partnered with Zomato-owned Blinkit for quick commerce, which is expected to significantly drive sales, especially during peak seasons like summer.

Public Engagement

As Atomberg continues to grow and adapt to market trends, it’s essential for consumers and investors alike to keep an eye on its performance. Do you think Atomberg’s expansion into new product categories will contribute to profitability in the long run?

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