Atomberg Technologies' revenue jumps 31% to Rs 848 crore in FY24; losses up by 46%

Atomberg Technologies, a Mumbai-based consumer appliance brand known for its energy-efficient products, reported a 31% rise in its revenue for the fiscal year ending March 2024 (FY24).

The company’s operating revenue grew from Rs 645 crore in FY23 to Rs 848 crore in FY24. This growth was primarily driven by strong performance in Atomberg’s fan segment, which accounted for Rs 841 crore of the total revenue.

Its additional product lines, such as mixer grinders and smart locks, contributed Rs 7 crore, highlighting the brand’s efforts to diversify.

Widening net loss despite revenue surge

Despite the revenue increase, Atomberg’s net losses grew by 46.3%, reaching Rs 202 crore, compared to Rs 138 crore in the previous fiscal year.

Co-founder Sibabrata Das attributed the widening loss to factors like employee stock ownership plan (ESOP) grants, management bonuses, and fundraising expenses.

However, the company saw improvements in operational efficiency, with EBITDA losses narrowing from Rs 49 crore in FY23 to Rs 22 crore in FY24.

Das mentioned that the company is optimistic about achieving operational profitability by the end of the current fiscal year.

Increased focus on offline and online sales channels

Atomberg’s revenue distribution shows a significant focus on offline sales channels, which contributed around 70% of the total revenue.

The remaining 30% came from online platforms, including popular e-commerce sites like Amazon and Flipkart, as well as Atomberg’s direct-to-consumer website.

While Atomberg does not operate its own physical stores, it has expanded its presence in about 30,000 multi-brand outlets across India, aiming to increase its offline reach by nearly 20% year-on-year.

Strategic investments in R&D and new product development

During FY24, Atomberg made significant investments in research and development (R&D), including setting up a new R&D facility in Pune at a cost of Rs 70 crore.

The company views this investment as critical for product innovation, with plans to expand its product portfolio over the next 12-18 months.

New offerings may include water purifiers and other kitchen appliances, signaling Atomberg’s intent to grow beyond its core fan business.

The company expects non-fan products, particularly in the kitchen appliance segment, to contribute 4-5% of the total revenue by the end of this fiscal year.

Recent funding and future expansion plans

In May 2023, Atomberg raised $86 million in a May 2023 funding round led by Temasek and Steadview Capital, with participation from Jungle Ventures, Trifecta Capital, and Inflexor Ventures.

The funding facilitated exits for some early investors, while Atomberg’s overall valuation reached $358 million as of June 2023.