Atomberg Technologies Pvt Ltd, a consumer durables company which primarily makes energy-saving fans, on Monday said it has raised $86 million (around Rs 710 crore) as a part of its Series C funding round co-led by Singapore’s state investor Temasek and global venture capital fund Steadview Capital.
In March this year, Mint first reported that Atomberg is in talks to raise close to $90 million.
Atomberg plans to use the fresh funds to boost manufacturing capabilities, support new product launches, deepen offline presence across key regions and consolidate its position in India's consumer appliance market.
"With this round, our focus is on enhancing product development and improving our product suite," said Manoj Meena, co-founder and chief executive officer at Atomberg.
The company also seeks to scale up its headcount with the latest fundraise.
Atomberg, founded by technocrats and IIT Bombay alumni Manoj Meena and Sibabrata Das in April 2012, specializes in the production of energy-efficient smart fans. It has also expanded its presence into kitchen appliances with inverter-technology-led mixer grinders and other home appliances. The company sells its products via online marketplaces like Amazon and Flipkart as well as through offline channels.
Prior to this, the company raised $20 million as part of its growth funding round led by Jungle Ventures in December 2021. Also, in September 2019, the Mumbai-based company raised a Series A funding round led by A91 Partners.
Last year, Atomberg had opened its Pune manufacturing plant which is spread over 350,000 sq feet. The company had targeted manufacturing 750,000 fans and around 25,000 mixer grinders per month from the facility.
Atomberg’s revenue from operations in the financial year ended March 2023 grew 2.5x to Rs 356 crore from Rs 143 crore in FY21. On the other hand, its net loss stood at Rs 39.3 crore in FY22, nearly the same as in the fiscal before.
India's direct-to-consumer (D2C) segment is growing rapidly, with investors continuing to back brands having sound unit economics and scale. For instance, D2C ayurvedic beauty brand The Ayurveda Co (T.A.C) bagged Rs 100 crore in its Series A funding round, led by consumer-centric venture fund Sixth Sense Ventures, in March.
The same month, clothing brand The Souled Store Pvt. Ltd, raised $16.4 million in its Series C fundraising round led by Mumbai-based mid-market private equity (PE) firm Xponentia Capital, a backer of companies like dining chain Barbeque Nation; fintech player Easy Home Finance and baby care brand R for Rabbit.