Atomberg’s FY23 Net Loss Surges 3.5X To INR 138 Cr

SUMMARY

Revenue from operations rose 86.59% to INR 645.13 Cr in FY23 from INR 345.74 Cr in FY22

The home appliances startup’s total expenses doubled to INR 787.39 Cr in FY23

Atomberg’s EBITDA margin deteriorated to -21.31% in FY23 from -11.3% in FY22

Home appliances manufacturer Atomberg Technologies’ loss more than tripled during the financial year ended March 31, 2023. The Navi Mumbai-based startup’s net loss grew 3.5X to INR 138.35 Cr in the financial year 2022-23 (FY23) from INR 39.3 Cr in the previous fiscal year.

Revenue from operations rose 86.59% to INR 645.13 Cr in FY23 from INR 345.74 Cr in FY22. Total revenue, including other income, jumped 81.39% to INR 649.04 Cr from INR 357.8 Cr in FY22.

Founded by IIT Bombay alumni Manoj Meena and Sibabrata Das in 2015, the home appliances startup manufactures energy-efficient, remote and voice-controlled fans and fan accessories. Its product portfolio includes ceiling, pedestal, wall and exhaust fans, mixer grinders and smart locks.

Atomberg earns a majority of its revenue from the sale of products on its own website, ecommerce portals such as Amazon and Flipkart, and offline retail stores.

Expenses Shoot Up

Atomberg, which has been on an aggressive growth trajectory, saw its total expenses double to INR 787.39 Cr during the year under review from INR 387.01 Cr in FY22.

It must be noted that the startup has been increasing its production capacity and expanding its omnichannel capabilities. For instance, in June 2022, it launched a state-of-the-art manufacturing unit in Bhamboli (Pune) with an investment of INR 25 Cr. This facility is 4X in terms of size compared to its plant in Nerul in Navi Mumbai.

Employee Expenses Zoom: In line with its expansion plans, Atomberg is also looking to strengthen its human resources. This is reflected in its employee costs. The startup’s employee benefit expenses grew 3.4X to INR 137.13 Cr in FY23 from INR 40.11 Cr in the previous fiscal year.

Other Major Expenses: Atomberg’s cost of materials consumed rose 69.3% to INR 376.24 Cr during the year under review from INR 222.13 Cr in the previous fiscal year. Meanwhile, finance cost rose to INR 5.58 Cr from INR 1.88 Cr in the previous fiscal year.

On a unit economics level, the startup spent INR 1.22 to earn every rupee from operations in FY23.

EBITDA margin deteriorated to -21.31% in FY23 from -11.3% in FY22.

Earlier, in an interview with Inc42, Atomberg founders said that they were aiming to surpass INR 1,000 Cr mark in total revenue in FY24.

The startup last raised $86 Mn in a Series C round led by Temasek and Steadview Capital along with Trifecta Capital, Jungle Ventures and Inflexor Ventures. Overall, the startup has raised a total funding of $126.5 Mn till date.