IPO-Bound Atomberg Plans to Raise ₹40 Crore via Secondary Capital Round

Home appliances firm Atomberg is in discussions to raise about ₹40 crore through a secondary transaction as it prepares for an initial public offering (IPO), as per Inc42 reports. 

The proposed deal is being led by Forj Capital, with participation from White Whale Partners, YouTuber Tanmay Bhatt and a few other angel investors. The round is expected to close in the next few weeks and is likely to value the company at around ₹5,000 crore. 

Focus on Shareholding Realignment 

The secondary sale is aimed at reorganising Atomberg’s cap table ahead of the IPO. Early investor A91 Partners is expected to dilute its holding to below 20% to avoid being categorised as a promoter entity under listing rules.  

Founders Sibabrata Das and Manoj Meena are also set to sell shares worth about ₹12 crore. Some former employees are expected to sell a portion of their ESOPs as part of the transaction. 

Atomberg Overview 

Founded in 2012 by IIT Bombay alumni Das and Meena, Atomberg started operations in the B2B segment with energy-efficient BLDC fans.  

The company entered the consumer market in 2016. Its current product portfolio includes BLDC-based ceiling and pedestal fans, mixer grinders and water purifiers, among other home appliances. 

Distribution and Market Presence 

Atomberg sells its products through multiple channels. These include its own direct-to-consumer website, ecommerce platforms such as Amazon and Flipkart, and offline retail outlets.  

The company has expanded its presence across online and physical distribution as it added new product categories over the years. 

IPO Plans Taking Shape 

Atomberg is targeting a public listing in FY27. While the company has not shared detailed plans, it is expected to file its draft red herring prospectus with SEBI by July 2026. The IPO size is estimated at ₹1,500-2,000 crore.  

The fresh capital is expected to be used for capital expenditure, debt repayment and marketing newer categories. 

Financial Performance and Funding 

Atomberg has raised about $126.5 million in funding so far from investors such as Temasek Holdings, Steadview Capital, Jungle Ventures, Inflexor Ventures and Trifecta Capital Advisors.  

According to Tofler data, revenue rose 31.5% to ₹848.6 crore in FY24 from ₹645.1 crore in FY23. Net loss increased to ₹202.9 crore from ₹138.1 crore in the same period. 

Read More: SEBI Clears IPOs of 7 Companies, Including Yashoda Healthcare and Orient Cables! 

Conclusion 

The proposed secondary sale is being pursued alongside IPO preparations and is intended to adjust ownership levels ahead of the planned listing. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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