However, its net loss widened about 46.3% to Rs 202 crore from Rs 138 crore during this period.
The company’s cofounder Sibabrata Das told ET that losses increased over the past two financial years due to fresh employee stock ownership plan (ESOP) grants, management bonuses and fundraising expenses. The operational earnings before interest, taxes, depreciation and amortisation (Ebitda) improved to a loss of Rs 22 crore in 2023-24 from a loss of Rs 49 crore in the previous year.
“Our operational Ebitda has increased significantly. If we look at FY22, there were no major ‘other non-cash items’ like ESOP and bonuses. In FY23 and FY24, the difference between operating Ebitda and profit after tax (PAT) numbers is largely because of these non-performance items,” he said.
Das said the company is on track to reaching operational profitability by the end of this fiscal.
Atomberg, founded by IIT Bombay alumni Das and Manoj Meena, had reported a net loss of Rs 39 crore for 2021-22.
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For 2023-24, about 66% of its total expenses were attributed to material costs, with employee and marketing expenses also representing significant cost segments. A major infrastructural investment was the establishment of a research and development (R&D) facility in Pune, costing about Rs 70 crore, which Das said would continue to attract investment in R&D .Currently, 70% of Atomberg’s revenue comes from offline channels, with the remaining 30% from online channels, including ecommerce platforms such as Amazon, Flipkart and the company’s direct-to-consumer website.
While the company does not operate its own offline stores, it is present in about 30,000 multi-brand outlets nationwide, expanding its reach by nearly 20% year-on-year.
In 2023-24, Atomberg generated Rs 841 crore from its fan business, with the remaining Rs 7 crore contributed by the mixer grinder and smart lock segments. It aims to increase the share of the non-fan business in overall revenue, with the mixer grinder segment projected to contribute 4-5% of total revenue by the end of this fiscal.
The company is also preparing to enter new product segments over the next 12-18 months, including water purifiers and other kitchen appliances.
Further, Das said, Atomberg may consider a secondary transactions-led funding round next year to provide exits to existing investors.
In May 2023, the company completed a $86 million funding round led by Singapore’s sovereign wealth fund Temasek and Steadview Capital, with participation from Trifecta Capital, Jungle Ventures and Inflexor Ventures, in a mix of primary and secondary issuances. As part of the deal, it facilitated exits for early angel investors, with existing investor A91 Partners also partially divesting its stake. According to Tracxn, Atomberg has raised a total of $128 million to date, and was valued at $358 million as of June 2023.
Discussing Atomberg’s quick commerce play, Das said the company went live on Zomato-owned Blinkit earlier this year and views quick commerce as a significant driver for its fan business in the future, especially during summer months.