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Atomberg Technologies, the maker of energy-saving fans, is in talks with investors to raise funds at a nearly $425 million valuation, three people aware of the development said.

The Mumbai-based startup is seeking to raise around $75 million, one of the three people said. The fundraising includes a secondary component to provide an exit to some of its early backers, the person said, requesting anonymity.

Atomberg will use the funds to expand its product line and boost marketing, the people said, also declining to be named. The startup hired investment bank Avendus Capital to scout for investors.

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Atomberg is in talks with WestBridge Capital and Steadview Capital, among others. While a spokesperson for Avendus declined to comment, email queries to Atomberg and other investors went unanswered till press time.

The Mumbai-based startup, founded in 2012 by Indian Institute of Technology-Bombay alumni Manoj Meena and Shibam Das, specializes in producing energy-efficient fans, but has also expanded into kitchen appliances with the launch of mixer grinders.

Atomberg claims its fans use brushless DC motors and consume 65% less electricity than fans that use traditional induction motors, resulting in annual savings of around 1,500 per year. The fans are also remote-controlled. Indians are increasingly exploring energy-efficient appliances amid rising electricity costs and the impact of energy-guzzling gadgets on environment. 

Earlier this year, Atomberg opened a manufacturing plant in Pune, spread over 350,000 sq. feet. The factory will have the capacity to manufacture as many as 750,000 fans a month. It will also support Atomberg’s entry into kitchen appliances with a manufacturing capacity of 25,000 mixer grinders per month.  The firm claims it has reached an annual revenue run rate of 700 crore in the fan business and has sold its products to more than 1 million households.

 The company last raised $20 million as part of its growth funding round led by Jungle Ventures in December 2021.

In September 2019, the firm raised its Series A round of funding led by A91 Partners. A91 Partners also participated in the Series B round with a contribution of 70 crore.

In May 2016, it raised $1 million in a pre-Series A round from VC firm Parampara Capital. Prior to this, Atomberg raised 1 crore from Aar EM Ventures in July 2015.

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