The Grit and Innovation That Transformed Atomberg into a Leading Home Appliances Brand

In 2015, Atomberg, a relatively small fan startup, found itself teetering on the brink of financial disaster. To fulfill an order for 1,000 fans, they urgently needed an advance payment of Rs10 lakh. However, a tense negotiation session resulted in them securing only Rs7 lakh. This left Atomberg in a dire situation, with nearly 80% of their initial funding of Rs1 crore from Aarti Industries’ promoter family already exhausted. To complicate matters further, mass manufacturing was largely uncharted territory for the two founders, Sibabrata Das and Arindam Paul.

Their moment of salvation came in 2016 when IDFC Parampara invested Rs7.5 crore in Atomberg. This financial injection allowed the startup to escalate daily fan production from a mere 30 fans in April 2016 to a commendable 100 fans by the following year. By April 2018, the company had successfully transitioned into a direct-to-consumer (D2C) brand. Atomberg’s growth trajectory had been redefined, shifting from a struggling B2B supplier to a thriving D2C enterprise.

In 2019, the founders made the strategic decision to seek additional funding to further accelerate their growth. However, their ‘David versus Goliath’ narrative, lack of an offline distribution network, unproven manufacturing capabilities, and limited brand recognition presented significant hurdles. Just as their hopes began to wane, a potential strategic investor showed interest, raising the prospect of salvation. Yet, this glimmer of hope faded as the funding deal fell through, leaving Atomberg with no viable options. Salaries were overdue, vendors remained unpaid, and existing investors were reluctant to inject more capital. With just over a month’s operational runway left, the once-promising company faced the grim possibility of closure.

It was at this critical juncture that the founders adopted a ‘why not’ attitude, leading them to A91 Partners, a consumer brand-focused fund established by former Sequoia executives Gautam Mago, VT Bharadwaj, and Abhay Pandey. Although the fund’s ticket size exceeded Atomberg’s requirements, they seized the opportunity and secured around Rs75 crore ($10 million) in Series-A funding from A91 Partners.

The impact of this funding was immediately visible. Atomberg’s operating revenue surged from Rs69 crore in FY20 to an impressive Rs360 crore, based on unaudited numbers for FY23. Daily fan production witnessed a remarkable jump, increasing from a modest 1,000 in April 2019 to an impressive 10,000 in April 2022. Alongside this growth, Ebitda margins improved substantially. Atomberg, once perceived as a ‘David,’ had convincingly transformed into a formidable player in the industry.

Atomberg continued to innovate, expand its product range, and explore new growth opportunities. With a mission to become a Rs5,000-crore business within five years, the founders remain resolute in their pursuit to redefine the consumer electronics sector and emerge as a leading small appliances company.

VT Bharadwaj, General Partner at A91 Partners, extolled Atomberg’s distinctive approach in challenging market leaders with superior products. The founders’ unwavering determination and spirit during years of adversity convinced A91 Partners to invest in them. Atomberg’s journey serves as a testament to the power of resilience, innovation, and unwavering determination.

In 2011, Manoj Meena embarked on his entrepreneurial journey by founding Atomberg. Despite holding a promising job at the Indian Space Research Organisation (ISRO), he chose the path of entrepreneurship, driven by a passionate desire to create something significant. His entrepreneurial journey began with a small lie to his family, as he deferred his secure job to pursue his entrepreneurial dreams. Meena was resolute in his determination to leave a lasting mark in the world of startups.

By 2013, Meena’s entrepreneurial exploits led him to co-found Atomberg with Sibabrata Das. Their journey was anything but smooth, marked by a series of ventures that faced challenges and setbacks. Over several years, they experimented with various ideas and businesses that failed to gain traction. By 2015, they faced a critical turning point with dwindling funds and an unmet significant institutional order.

This juncture served as the catalyst for Atomberg’s founders to discover their inspiration to disrupt the fan industry. They recognized an opportunity to develop energy-efficient fans that could outperform traditional models while delivering substantial cost savings to consumers. Leveraging Brushless Direct Current Motor (BLDC) technology, they created fans that significantly reduced energy consumption and introduced remote control functionality.

Their innovation was groundbreaking, allowing them to challenge established fan manufacturers with a superior product. They expanded their product portfolio to encompass ceiling fans, pedestal fans, wall fans, exhaust fans, and even mixer grinders. Atomberg’s commitment to both online and offline sales channels was pivotal to their success. By 2019, they had made remarkable strides in fan production and were well on their way to establishing themselves as a prominent D2C brand.

This audacious journey and their innovative thinking attracted investment from A91 Partners, thereby transforming Atomberg into a dominant player in the consumer electrical space. The co-founders, once labeled as failures, have now assumed leadership positions in the industry. They are working towards realizing their vision of becoming a dominant force in the market, thereby building an aspirational product company.

Atomberg’s journey, from the position of ‘Davids’ challenging market leaders to that of a formidable ‘Goliath,’ stands as a testament to their unwavering determination, their innovation, and their entrepreneurial spirit. Their story embodies the indomitable spirit of entrepreneurs who dare to disrupt the norm and emerge as leaders in their industry.