Atomberg Technologies, a manufacturer of home appliances, experienced a significant increase in its net loss, which more than tripled during the fiscal year ending on March 31, 2023. The Navi Mumbai-based startup reported a net loss of INR 138.35 Cr in the financial year 2022-23 (FY23), marking a 3.5X growth from the INR 39.3 Cr loss recorded in the preceding fiscal year.
The revenue from operations experienced a substantial increase, surging by 86.59% to INR 645.13 Cr in FY23 compared to INR 345.74 Cr in FY22. The total revenue, inclusive of other income, also saw a notable rise of 81.39%, reaching INR 649.04 Cr from INR 357.8 Cr in FY22.
Established in 2015 by Manoj Meena and Sibabrata Das, alumni of IIT Bombay, this startup specializing in home appliances produces energy-efficient fans and fan accessories that can be controlled remotely and through voice commands. Their product range encompasses ceiling, pedestal, wall, and exhaust fans, as well as mixer grinders and smart locks.
A significant portion of Atomberg’s revenue is generated through the sale of its products on its official website, as well as on prominent e-commerce platforms like Amazon and Flipkart. Additionally, offline retail stores also contribute to its overall revenue stream.
In its robust expansion phase, Atomberg witnessed a doubling of its total expenses to INR 787.39 Cr in the fiscal year under consideration, compared to INR 387.01 Cr in FY22.
It’s important to highlight that the startup has been enhancing both its production capacity and omnichannel capabilities. A notable example of this is the inauguration of a cutting-edge manufacturing unit in Bhamboli (Pune) in June 2022, involving an investment of INR 25 Cr. This facility is four times larger than its existing plant in Nerul, Navi Mumbai.
Aligned with its expansion strategy, Atomberg is actively reinforcing its human resources, as evidenced by the notable increase in employee costs. The startup’s employee benefit expenses surged by 3.4 times, reaching INR 137.13 Cr in FY23 compared to INR 40.11 Cr in the preceding fiscal year.
The cost of materials consumed by Atomberg increased by 69.3%, reaching INR 376.24 Cr in the fiscal year under consideration, as opposed to INR 222.13 Cr in the prior fiscal year. Simultaneously, the finance cost escalated to INR 5.58 Cr from INR 1.88 Cr in the preceding fiscal year.
From a unit economics perspective, the startup incurred INR 1.22 to generate each rupee from operations in FY23.
The EBITDA margin declined from -11.3% in FY22 to -21.31% in FY23.
Earlier in an interview, the founders of Atomberg expressed their aim to surpass the INR 1,000 Cr total revenue mark in FY24.
In its latest funding round, the startup secured $86 million in a Series C, with primary contributions from Temasek and Steadview Capital, alongside participation from Trifecta Capital, Jungle Ventures, and Inflexor Ventures. As of now, the startup has accumulated a total funding of $126.5 million.