Consumer appliances brand Atomberg Technologies has raised $86 million in its Series C funding round led by Temasek Holdings and Steadview Capital, the company said in an announcement.
The round saw participation from Trifecta Capital and existing investors Jungle Ventures and Inflexor Ventures, via a mix of primary and secondary issuances. The fresh fund infusion will be used to boost manufacturing capabilities, new product launches, deepen offline presence across key regions and consolidate Atomberg’s position in the consumer appliance market, the firm said.
Some of the early investors booked a partial exit, said cofounder Sibabrata Das. Early investors who made a partial exit in this round include A91 Partners and the Gogri family.
The company will use the funds to boost new product offerings such as mixer grinders, smart locks and build out its fan series, Das said.
It will also enhance its research and development capabilities.
Mint first flagged a deal in Atomberg Technologies in November 2022 and later reported in March that Temasek and Steadview were poised to close this round.
The fundraise was struck at a valuation of $425 million to $450 million, Mint reported previously.
Das said that Atomberg had been reporting a 100% year-on-year growth in recent years.
It expects to be profitable in FY24 and is aiming to generate revenues of ₹1000 crore, Das said.
The company was profitable on earnings before interest tax, depreciation and amortisation (Ebitda) level in the past two quarters, he added.
“Currently, the yearly run rate is $150 million in revenues,” Das, who is also the chief operating officer at Atomberg, said. The yearly run-rate was calculated by annualising the sales numbers from the last quarter data.
Founded by technocrats and IIT Bombay alumni, Manoj Meena and Das, Atomberg makes brushless direct current electric motor (BLDC) fans.
Avendus Capital acted as the exclusive financial advisor to Atomberg on this transaction.
“Atomberg is an engineering-led product-first company focused on solving latent consumer problems. Our proprietary tech stack is at the core of every product and has evolved over the years to deliver industry-leading products. With this round of fundraising, our focus is on enhancing product development and improving our product suite,” Meena, the CEO at Atomberg said in a statement.
“Atomberg’s deep engineering expertise and focus on solving consumer problems through innovative products align perfectly with our strategy of backing the fastest growing companies across the consumer and technology sectors in India,” Ravi Mehta, Founder and CIO at Steadview Capital said in a statement.
Trifecta Growth Equity Fund Partner Sandeep Bapat said that it had invested in Atomberg from their equity corpus after investing from the venture debt fund 3 years ago.
“This transaction validates our conviction that ample capital is available for exceptional businesses, as global investors remain excited about the Indian digital and tech landscape,” said Neeraj Shrimali, Managing Director, Digital and Technology Investment Banking, Avendus Capital said.