Zetwerk Raises $90 Million At $3.1 Billion Valuation, Plans IPO In 18 Months

Manufacturing unicorn Zetwerk has raised $90 million, about Rs 766 crore, in a fresh funding round at a valuation of $3.1 billion, a top company official said on Thursday. The valuation of the company was $2.7 billion early this year.

"We have raised close to $90 million across many installments in a funding round led by Khosla Ventures. From here onwards, it's not like we're trying to raise rounds or anything, but if we come across high-quality people who are going to be long-term shareholders for the next 5-10 years then we will not say no," Zetwerk Co-Founder and CEO Amrit Acharya told PTI.

Zetwerk works with various partners for manufacturing of electronics, renewable energy, aviation, and infrastructure solutions etc.

Acharya said that the company started business around six years ago and its gross merchandise value (GMV) increased by about 35% to cross around $2.1 billion, about Rs 17,564 crore.

"This year we have done Rs 17,600 crores of GMV. This is the total transactions that we have done for this year. The same number last year was Rs 13,000 crore. If you look at where growth came from, approximately 20% of the GMV is from the US. These are companies who used to buy from China before and are shifting their production to India," Acharya said.

He said that three years ago there was no manufacturing engagement of his clients with India.

The company posted an operating revenue of around Rs 15,000 crore in 2023-24.

"The bulk of the growth came from this internationalisation of the business. And in terms of where we are looking to use the capital, that is also to further that goal. We want to increase the international part of the business even more. In another three to five years, we want to take this from 20 to 40%," Acharya said.

He said that solar and wind are the main drivers for the company's growth in the US.

"Renewables, electronics, aerospace and defense, these are the three main bets as a business. These three put together would be a third of revenue today. We expect these three to become 50-60% of revenue in the next three to five years,' Acharya said.

The company is also planning to go public in the next 12-18 months.

"We are thinking about going public. I would say it's still early for us, but 12 to 18 months is what we are thinking. It may go up or down depending on various other dynamics. Towards that process, we are starting a lot of work. We have not yet appointed banks, but we will do that soon," Acharya said.

He said that the firm's valuation, actual dilution etc. will be decided as per the process for IPO.