Atomberg has joined hands with Tata-owned Voltas to manufacture compressors for room air conditioners (ACs) in India, marking a significant expansion of the consumer appliances startup into B2B manufacturing as it prepares for a potential public listing.
Voltas has signed a binding term sheet with Atomberg’s B2B subsidiary, Atomberg Innovation Private Limited (AIPL), to establish a joint venture (JV) focused on developing, manufacturing and supplying room AC compressors and allied parts. The proposed venture will emphasise energy efficiency, operational reliability, cost competitiveness and progressive localisation.
Under the partnership, Voltas will serve as the JV’s anchor customer, providing a stable, high-volume demand base. However, the venture will also have flexibility to supply compressors to other customers, creating opportunities for broader market participation, greater scale and diversified revenue.
The partnership combines complementary capabilities. Voltas brings its 30,000 touch points along with expertise in manufacturing, products and supply chain. Atomberg Innovation contributes its compressor technology, engineering and product design capabilities. Atomberg has developed deep-tech expertise in efficient motors, control drives and advanced engineering.
The proposed JV remains subject to due diligence and applicable regulatory approvals.
Founded in 2012 by IIT Bombay alumni Manoj Meena and Sibabrata Das, Atomberg initially operated as a B2B business selling energy-efficient BLDC fans before entering the consumer market in 2016. It now sells mixer grinders, water purifiers and other small appliances through offline retailers, online marketplaces and its own website.
In March this year, Atomberg entered B2B manufacturing through AIPL, building motors and controllers for home appliances. Its latest partnership with Voltas extends that strategy into AC components and could help the company validate its indigenous compressor technology while building a new revenue stream.
Atomberg has raised nearly $126.5 million from investors including Inflexor Ventures, Trifecta Capital Advisors, Steadview Capital and Temasek. In FY25, its operating revenue increased more than 20% year-on-year to ₹958.4 crore, while net losses narrowed 41% to ₹117 crore.
The Voltas partnership comes as Atomberg advances plans for an IPO. Last month, it converted into a public entity, taking its first formal step towards a listing. The company is looking to raise ₹1,500 crore to ₹2,000 crore through the public offering, combining a fresh issue representing 25–35% with an offer for sale by existing investors.
With Voltas as an anchor customer, broader supply potential and growing manufacturing capabilities, the JV could strengthen Atomberg’s positioning ahead of its planned IPO and strengthen its long-term profile.
