Indian Supply-Chain Startup Zetwerk Raises $120 Million

(Bloomberg) -- Zetwerk, a startup that connects global companies with manufacturing facilities in India, raised $120 million to bolster its technology and expand its customer base.

The funding round consists of existing investors including Lightspeed Venture Partners, Sequoia Capital India and Greenoaks Capital and brings the total that Zetwerk has raised to $193 million, it said Wednesday in a statement. The Series D round values the company at more than $600 million, according to a person familiar with the deal.

The Bangalore-based startup more than tripled its sales last year as the pandemic exposed the fragile nature of global supply chains, prompting companies to diversify their manufacturing and sourcing to avoid disruptions. Zetwerk offers its technology platform and project-management help to customers seeking manufacturers for everything from electric-vehicle and aerospace components to luxury apparel.

“We aim to remove friction in the supply chain,” Amrit Acharya, co-founder and chief executive officer, said in an interview via video conference. “After one or two cycles of smaller trial orders, we now see customers placing large multimillion-dollar orders.”

Zetwerk, whose backers also include Accel, was founded in 2018 by four alums of Indian Institute of Technology. The company aims to speed up project management, linking more than 2,000 small manufacturers with over 250 global customers. It also connects its small manufacturers with suppliers, logistics providers and banks.

India lags behind China as well as smaller countries including Vietnam in manufacturing. Boosting that sector is key for the government to create jobs lost during the world's strictest lockdown to combat the Covid-19 pandemic.

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“Global customers haven't fully embraced India's manufacturing,” Acharya said. “But we see strong intent.”

Zetwerk started with industrial goods and has recently seen a spike in demand for consumer products, which have risen to 15% of its business. The startup will use the fresh capital to strengthen its technology and expand into new regions and categories, with plans to offer services such as design, Acharya said.

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