While Voltas will be the anchor customer, the joint venture will have the flexibility to supply compressors to other clients as well
The JV enables Atomberg to secure Voltas as a high-volume customer, validate its indigenous compressor technology and diversify its revenue ahead of an anticipated IPO
This comes as Atomberg is looking to raise ₹1,500 Cr to ₹2,000 Cr via its public offering, which will comprise both fresh issue of shares (25-35%) and an OFS by existing backers
IPO-bound consumer appliances startup Atomberg has joined hands with Tata-owned Voltas to manufacture compressors for room air conditioners (ACs) in India.
In a statement, Voltas said that it has signed a binding term sheet with Atomberg’s B2B subsidiary, Atomberg Innovation Private Limited (AIPL), to form a joint venture (JV) to develop, manufacture and supply room AC compressors and other allied parts.
“The proposed joint venture is intended to undertake the development, manufacturing, and supply of air conditioner compressors, with a strong emphasis on high energy efficiency, operational reliability, cost competitiveness, and progressive localisation,” said Voltas in a statement.
The partnership will look to leverage Voltas’ 30,000 touch points and expertise in areas such as manufacturing, product and supply chain. On the other hand, Atomberg Innovation will bring to the table its capabilities in compressor technology, engineering and product design.
In a statement, Voltas also said that it will be the anchor customer of the JV and will provide a “stable demand base”. The AC manufacturer also added that the venture will have the flexibility to supply compressors to other customers, “enabling broader market participation, scale, and long-term competitiveness”.
“Atomberg has developed deep-tech capabilities in efficient motors, control drives and advance engineering. This partnership gives us the opportunity to combine our technology strengths with Voltas’ extensive air conditioning expertise, manufacturing capability and market scale…,” said Atomberg cofounder Manoj Meena.
The JV is still subject to the completion of due diligence and receipt of applicable approvals from relevant authorities.
Founded in 2012 by IIT Bombay alumni Meena and Sibabrata Das, Atomberg initially operated on a B2B model and sold energy-efficient BLDC fans. It entered the consumer market in 2016. Today, it sells a range of appliances such as mixer grinders, water purifiers, and small appliances via offline retailers, online marketplaces and its own website.
It entered the B2B manufacturing business via AIPL in March this year to build motors and controllers for home appliances.
Backed by the likes of Inflexor Ventures, Trifecta Capital Advisors, Steadview Capital and Temasek, atomberg has raised nearly $126.5 Mn to date.
On the financial front, the appliance startup managed to narrow its net losses by 41% YoY to ₹117 Cr in FY25, while operating revenue rose over 20% YoY to ₹958.4 Cr during the fiscal under review.
The partnership comes as Atomberg is looking to list on the bourses. Last month, the startup took its first step towards an IPO after it converted into a public entity.
It is looking to raise ₹1,500 Cr to ₹2,000 Cr ($165 Mn to $220 Mn) via its public offering, which will comprise both fresh issue of shares (25-35%) and an offer for sale (OFS) by existing investors.