Digital consumer brand Atomberg raises $86 million in funding from Temasek, Steadview

The company, founded by IIT Bombay alumni – Manoj Meena and Sibabrata Das – will use the fund infusion to boost manufacturing capabilities, support new product launches, deepen offline presence across key regions. Further, the company aims to expand its offerings including mixer grinders, the ‘Aris’ fan series and smart locks. Additionally, it seeks to enhance R&D capabilities to aid new product launches across various categories.

The secondary share sale, as a part of the deal, has provided an exit to early angel investors of the company. Existing investor A91 Partners has also sold a small part of its stake.

“Our monthly revenue crossed Rs 100 crore in March and currently we are at a $150 million annual revenue run rate,” said Das.

Atomberg is planning on expanding into two new categories by the 2023 end or early next year, he said. These include kitchen appliances such as chimneys and cooktops. Its recently launched products – mixer grinder and smart lock – are seeing strong traction in the market, said Das.

“Within one month, we completely sold out our smart lock stock. Mixer grinder is also getting a good early response. We expect mixer grinder to contribute 10% by next financial year,” he said.

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While it expands into new product categories, Atomberg continues to see strong growth potential in its flagship product line – BLDC Fans”The BLDC market is 20% of the overall fans market, but is growing at 50% year over year. In next 5 years time it will become 50% of overall market and we want to keep our market leadership intact,” said Das.

Atomberg derives 70% of its sales through offline channels and 30% through online sales. Currently, the company’s sales largely come from south and west India, contributing 65% to its top line.

“We entered the north and east markets just a year back. On the offline side, we currently have 25,000 counters and we are adding another 2,000 to strengthen our distribution. Offline will remain 70-75% of sales in the long term,” said Das.

Atomberg currently has one manufacturing plant with a capacity to produce close to 1 million units a month.

“We are also investing capital to make it more and more automatic,” said Das.