Bengaluru-based B2B e-commerce unicorn Zetwerk has raised $20 million in Series F funding from Rakesh Gangwal, co-founder of IndiGo, reinforcing its position as a key player in the competitive landscape of manufacturing tech startups.
The B2B manufacturing marketplace business received a Series F investment from Rakesh Gangwal, IndiGo’s co-founder, via Wheelhouse Venture Capital, marking the company’s maiden investment. According to statistics, the company’s valuation following the round is $2.8 billion, demonstrating the company’s growing significance in the sector.
āWe are delighted to share that Mr Rakesh Gangwal has invested 20 million USD in Zetwerk through Wheelhouse Venture Capital. Mr Gangwal, with his extensive experience spanning several decades, brings invaluable insights into building businesses and iconic brands. His strategic guidance will be crucial in building Zetwerk into a generational company,” Zetwerk said in a statement.
The board of Zetwerk has passed a special resolution, allotting 40,81,593 Series F2 CPPS at an issue price of INR 407.39 each, raising a total of INR 166.28 crore ($20 million) in the current funding round. Post this investment, Wheelhouse Venture Capital now holds a little less than 1 percent stake in Zetwerk.
B2B e-commerce marketplace Zetwerk
Operational in over 15 countries, Zetwerk collaborates with offline suppliers engaged in fabricating, machining, casting, forging, and galvanizing machine parts. Serving over 100 customers across more than 25 industries globally, the company has experienced a substantial growth trajectory, with its GMV surging 2.3X to INR 11,448 crore in the last fiscal year.
In the fiercely competitive B2B e-commerce space, Zetwerk faces competition from players like Infra.Market, OfBusiness, and Moglix. While OfBusiness leads the pack with INR 15,342 crore in revenue and INR 463 crore in profit, Zetwerk continues to assert its position as a key player with a valuation of $2.8 billion.
Despite Zetwerk’s impressive growth, the fiscal year 2023 witnessed an 82 percent increase in losses, totaling INR 108.7 crore. However, the company remains optimistic about its future prospects and continues to attract notable investments.
Indigo backer Rakesh Gangwal Joins
Zetwerk had earlier secured around $150 million in funding from D1 Capital Partners in August 2021, propelling it to unicorn status. The recent investment from Rakesh Gangwal further cements the company’s position in the market amid a surge in investments in manufacturing tech startups.
The investment comes when manufacturing tech startups gain significant attention from prominent investors. Notable players like Groyyo, Ethereal Machines, and Keychain have raised substantial funds in 2023 and 2024, attracting investments from Lightspeed, Trifecta Capital, and Peak XV.
Zetwerk’s latest funding round, led by Rakesh Gangwal, underscores the growing confidence in the B2B manufacturing marketplace. With a valuation of $2.8 billion and a strategic investor on board, the company is poised for further growth and innovation in the evolving e-commerce landscape.
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