Zetwerk, a contract manufacturing and B2B e-commerce startup, has raised $70 million in fresh funding, pushing its Series F round total to $100 million to expand its footprint in renewable energy and prepare for an IPO.
This investment values the Bengaluru-based unicorn at $3 billion, a significant leap from its $2.7 billion valuation last year. Led by Khosla Ventures and Indigo Airlines founder Rakesh Gangwal, the funding also saw participation from new investor Baillie Gifford.
The funds will boost Zetwerk’s footprint in priority sectors like renewable energy, consumer electronics, aerospace, and IT hardware. Renewables contribute 40 percent of its revenue, showcasing its stronghold in sustainable industries. Plans are also underway to enter electric vehicle (EV) manufacturing, a strategic move aimed at tapping into one of the fastest-growing global markets.
Zetwerk’s expanding global reach includes operations in North America, Southeast Asia, the Middle East, Australia, and New Zealand. With over 1,800 active customers and a robust network of small-scale manufacturers, it continues to redefine B2B e-commerce by connecting buyers and suppliers seamlessly.
Zetwerk has IPO Plans in the Pipeline
Sources indicate Zetwerk is preparing for an IPO next fiscal year, aiming to raise $1 billion. The company has actively strengthened its cap table to enhance its appeal to long-term investors before going public. This anticipated listing will further solidify its market leadership and accelerate its global expansion.
Founded in 2018 by IIT alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk operates as a managed marketplace for contract manufacturing. It facilitates fabrication, machining, casting, forging, and galvanizing processes for industrial and consumer goods across automotive, aerospace, defense, and IT hardware sectors.
The company ventured into laptop production last year, signaling its diversification into high-demand IT products. Zetwerk’s innovative approach connects manufacturers with businesses, optimizing production timelines and minimizing costs, thereby establishing itself as a critical player in B2B e-commerce.
Impressive Financial Trajectory
While FY24 financial results are pending, Zetwerk’s FY23 performance saw revenue jump to INR 11,500 crore ($1.38 billion), a 2.3x growth from the previous year. Sources suggest its FY24 revenue surged to INR 15,000 crore ($1.8 billion), highlighting its rapid growth trajectory. Despite this, the company continues to manage operational challenges, with losses reported at INR 109 crore in FY23.
As Zetwerk prepares for its IPO, it competes with industry peers like Infra.Market, OfBusiness, and Moglix. Its latest $70 million funding round reflects investor confidence in its ability to lead the global contract manufacturing and renewable energy sectors.
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