Zetwerk, the B2B e-commerce giant specializing in custom manufacturing, has successfully secured a fresh infusion of $120 million. The latest fundraise, spearheaded by Avenir Growth Capital, took place in the Series F financing round, maintaining a steady valuation for the Bengaluru-based firm. Interestingly, this marks Zetwerk’s inaugural equity investment for the year 2023.
Diving into the specifics, Zetwerk’s board gave the nod for the issuance of 2,37,29,324 Series F2 compulsory convertible preference shares. Pegged at an issue price of Rs 407.4 each, the move aims to amass approximately Rs 966.7 crore, translating to roughly $118 million, as per the details furnished with the Registrar of Companies.
While Avenir Growth Capital has been at the forefront, leading with a commendable investment of Rs 617 crore (around $75.2 million), Footpath Ventures wasn’t far behind, chipping in with Rs 193 crore, which amounts to $23.5 million. The funding round also witnessed the active participation of investment stalwarts like Greenoaks Capital, Steadview Capital, D1 Capital, and Lightspeed, with their combined contributions rounding off to Rs 156 crore.
Recent evaluations by market experts place Zetwerk’s valuation at a whopping $2.7 billion post this Series F2 allotment. To put things in perspective, the company sported a valuation of approximately $2.68 billion during its previous fundraise in December 2021, where it successfully raised $210 million under Greenoaks’ leadership. The latest addition brings Zetwerk’s total raised funds to an impressive $674 million.
A quick snapshot of the current ownership reveals Avenir Growth Capital owning a 4.7% stake. Meanwhile, Lightspeed, Peak XV Partners, and co-founder Amrit Acharya boast stakes of 11.72%, 13.91%, and 7.95%, respectively.
Diving into Zetwerk’s origins and offerings, the platform was brought to life by a team of dynamic founders: Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary. Despite its relatively young age of three years, Zetwerk has made significant strides in the domain, bridging the gap between buyers and suppliers in the manufacturing sector. Their collaborations span across a spectrum of offline suppliers involved in tasks ranging from the fabrication and machining to casting, forging, and even galvanizing of machinery parts.
With its services extending to over 15 nations, Zetwerk takes pride in serving a diverse clientele of over 100 customers, cutting across a vast expanse of 25+ industries. Their reach is not limited to India but extends to North America, the Middle East, and the SEA region.
Financial aficionados will have to exhibit a tad bit of patience as Zetwerk’s financial statements for FY23 are on the horizon. However, a brief glance at the past indicates a promising trajectory. The firm witnessed a staggering 6X surge in its operational revenue, touching Rs 4,961 crore in FY22, a significant leap from Rs 835 crore in FY21. However, the losses showcased a moderate increment of 46.3%, amounting to Rs 60 crore in FY22.
