Zetwerk Eyes $20-30 Million Fundraise Ahead of IPO

As Zetwerk prepares for the initial public offering (IPO) in 2025, the B2B manufacturing unicorn has started discussion with some family offices and high-net-worth individuals (HNIs) to raise $20-30 million funds at a valuation of $3.1 billion, according to MoneyControl reports. The fresh capital is expected to strengthen the company’s capitalisation table ahead of its listing on the Indian stock exchanges.

Previously, Zetwerk secured around $67 million from various investors including Khosla Ventures, The Schiehallion Fund, Acron Heavy Industries, AEX4 LLC, and The Chinkerpoo Family Trust. Till now, the unicorn has raised nearly $740 million in funds. The company connects customers with suppliers across industries like consumer electronics, home appliances, and aerospace.

In January, the logistics unicorn has selected banks such as Axis Capital Ltd., Goldman Sachs Group Inc, Jefferies Financial Group Inc, JM Financial Ltd, JPMorgan Chase & Co, and Kotak Mahindra Bank for the upcoming IPO that could raise at least $500 million, Bloomberg reported.

The company is backed by investors like Peak XV Partners and Lightspeed India Partners.

Read More | Indigo Promoter Rakesh Gangwal Invests $20 Million In Zetwerk

Zetwerk’s Growth in FY24

In FY24, the contract manufacturing company reported a 25% increase in operating revenue to Rs 14,436 crore on year-on-year basis. The Bengaluru-based start-up also witnessed a 35% increase in its gross merchandise value (GMV) to Rs 17,564 crore for the financial year 2023-24.

The renewable and precision manufacturing segments of Zetwerk contributed around 92% of the company’s total GMV in FY24. In addition, its international markets, specifically North America, accounted for 21% of the business. The company reported earnings before interest, taxes, depreciation, and amortisation of Rs 191 crore for the same fiscal year.

The company received significant orders from industrial giants like L&T, NTPC, and Siemens. Last year, it has raised $90 million funds from Khosla Ventures, IndiGo Airlines cofounder Rakesh Gangwal, Bailie Gifford, Greenoaks, and Avenir.