Atomberg, the leading brand of consumer appliances with its innovative and R&D-driven products, has successfully closed an extension of its Series C round, raising considerable capital of $24 million (approximately ₹212 crore). This most recent injection of funds was led by Jongsong Investments, which is linked to an international investment company Temasek, and it demonstrates the continued belief of the company in the potential growth of Atomberg in the Indian appliances sector that is very competitive. The co-founders of the company and a strong group of existing institutional investors were also key participants in the funding tranche, which is a positive indicator of the solidarity of the strategic direction of the brand.

Fresh capital and investment details

The new capital was raised when the equity issuance was organised in a well-planned issue, as it was approved by the board of the company. The procedure was the issue of 10,006 issues of Series C1 and C2 preference shares, each issue being issued at an issue price of ₹2,11,835. This is how the mechanism enabled Atomberg to attract the needed financial resources to enable it to operate and expand further.

The composition of the Series C extension in detail indicates the extent of the commitment of both new and existing investors. In this tranche, Jongsong Investments, dominated by Temasek, invested a total of ₹132 crore in the company. The current venture capital partners showed that they still believed in the appliance brand. Jungle Ventures invested an amount of ₹17.8 crore, and Inflexor Fund invested ₹17.9 crore, for the total round size.

One of the major contributions was made by the leadership of the company. Manoj Kumar Meena and Sibabrata Das, their co-founders, had a significant ₹44 crore in the round, which was a clear sign of their personal investment and investment in their long-term viability of Atomberg.

This recent fundraising event also consolidates the financial support of Atomberg. As the Series C extension has now been closed, the total funds the consumer appliances brand has already raised have since exceeded the mark of $150 million. This path of successful fundraising also involves the prior, major round of the company of up to an $86 million Series C round, which was successfully closed in May of 2023. The pioneer Series C round, which was also led by Temasek in partnership with Steadview Capital, underscores the recurring and increasing association between Temasek and Atomberg in different financing rounds.

Market strategy and financial performance

Manoj Kumar Meena and Sibabrata Das founded Atomberg in 2012. It has concentrated on developing an R&D-driven portfolio based on smart technology and energy efficiency. Its major products include its energy-saving BLDC (Brushless DC Motor) and smart fans, which have found a good market niche as a result of low power consumption and innovation. Atomberg has also been able to diversify its product range beyond its main fan business to include modern appliances, mixer grinders and smart locks, among other products, thus serving the changing demands of the modern Indian consumer.

The market entry strategy of the brand was well planned and executed. Atomberg started with the B2B segment and began offering its services in 2015. It captured key institutional customers at this stage, including big conglomerates and state sector organisations like the Tata Group, Infosys and the Indian Railways. After the formation of this B2B background, the company ventured into the B2C (Business-to-Consumer) platforms.

This growth was achieved via large e-commerce sites such as Flipkart and Amazon. Atomberg has shown an end-to-end omnichannel strategy; it then started scaling an offline distribution network, which is an important step that started in 2018 and has been a major factor in accessing more consumers across India.

Atomberg has demonstrated strong financial performance with strong growth and increasing efficiency in its previous financial releases, but its financials for the Fiscal Year FY25 are still not officially released. The FY24 performance of the company showed a good operational performance. According to Atomberg, its operations revenue grew tremendously with a year-on-year increase of 31%  to reach a mark of ₹848 crore. Atomberg was also able to reduce its operational losses by a significant margin of 31.7% during the same period.

Conclusion

The effective raising of $24 million in the Series C extension, which is largely anchored by Temasek and with the solid support of Jungle Ventures, Inflexor Fund, and co-founders, is a great financial impetus to Atomberg. This infusion of capital, following a previous Series C raising of $86 million, will place the company at more than $150 million.

Having an established track record of R&D-driven strategies, a winning staged market plan, and solid financial performance, including a 31% rise in revenue and a 31.7% reduction in losses in FY24, Atomberg is positioned to exploit this investment. The sustained investment effort by international and local investors is a sign of the great faith in the endeavour of the company to conquer the smart and energy-efficient niche of the Indian consumer appliances market.