Bengaluru-based manufacturing firm Zetwerk recently raised ₹75 crore (approximately $8.8 million) by issuing 7,500 non-convertible debentures (NCDs).
These NCDs are valued at ₹1 lakh each. This funding was provided by JM Financial, which is also assisting Zetwerk in preparing for its IPO.
Zetwerk is reportedly planning to raise about $500 million via IPO in the next 12-24 months. If everything goes well, Zetwerk’s total valuation could reach $5 billion, as reported by The Economic Times.
Zetwerk is also working on the China+1 strategy, which refers to international firms seeking to outsource work away from China — and Zetwerk aims to assist them.
Currently, 60% of Zetwerk’s revenue comes from these international firms, and the company aims to increase this to 80% soon. This will help Zetwerk expand further in India and globally. Founders — Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary — believe that with the support of strong investors and new funding, they can expand their network of suppliers and buyers even further.
By using this fresh capital wisely and planning their IPO well, they hope to build bigger factories, reach more countries, and make Zetwerk one of the top names in the global manufacturing market.
The silver lining is that Zetwerk’s business is expanding rapidly — its revenue for FY24 was ₹14,436 crore, a 26% increase from the previous year. However, its losses also grew — nearly nine times larger at ₹919 crore, partly due to an additional expense of ₹371.7 crore.
Zetwerk is not the only player in this space. Other unicorn startups like Infra.Market and OfBusiness have also raised large sums. Infra.Market recently received $150 million, and OfBusiness raised ₹100 crore in a recent funding round. Moglix is another major player in this B2B manufacturing space.
