Zetwerk Valuation: Indian B2B Marketplace Reaches $1.33 Billion

Zetwerk Achieves Unicorn Status

A burgeoning Indian startup specializing in a business-to-business marketplace for manufactured goods has recently reached a significant milestone, attaining unicorn status within the South Asian market.

Series E Funding

Zetwerk, headquartered in Bangalore, announced on Monday the successful completion of a $150 million Series E funding round. This round was spearheaded by D1 Capital Partners, based in New York.

Avenir and IIFL joined as new investors, alongside contributions from existing backers including Greenoaks Capital, Lightspeed Venture Partners, Sequoia Capital, and Accel Partners.

The investment also saw participation from prominent angel investors such as Kunal Shah, founder of CRED, and Ritesh Agarwal, CEO of OYO.

Valuation Doubles

This new funding has propelled Zetwerk’s valuation to $1.33 billion. This represents a doubling of its previous valuation of $600 million to $700 million, achieved during its Series D round in February of this year.

Connecting Manufacturers and Customers

Founded four years ago, Zetwerk operates a B2B marketplace. It effectively links original equipment manufacturers (OEMs) and engineering, procurement, and construction (EPC) clients with a network of small and medium-sized manufacturing businesses.

Notably, all products currently offered through the platform are custom-made to specific client requirements.

Custom Manufacturing Focus

“Standard inventories for these types of components are uncommon,” explained Amrit Acharya, co-founder and CEO of Zetwerk, in a prior interview. “Orders trigger a search for manufacturers and workshops capable of producing them.”

Revenue Growth and Expansion

The startup has experienced substantial growth, expanding its operations into Southeast Asia and North America in recent years.

Zetwerk reported approximately a threefold increase in revenue during the 2020-21 fiscal year, reaching $128 million.

D1 Capital Partners' Perspective

Jeremy Goldstein of D1 Capital Partners stated, “We believe Zetwerk has quickly established itself as a leader in providing rapid and cost-effective manufacturing solutions globally.” He further emphasized the company’s role in accelerating the digital transformation of a traditionally analog industry.

Future Plans

The newly acquired capital will be utilized to enhance Zetwerk’s technological infrastructure and facilitate further expansion into international markets.

According to Acharya, “Zetwerk is assisting enterprises in adapting to digital manufacturing practices amidst the evolving landscape of global supply chains.”

He also noted that over the past year, more than 100 companies based in Western nations have relocated their supply chains to India through Zetwerk, encompassing both industrial and consumer product sectors.

India's Unicorn Surge

Zetwerk is now the 25th Indian startup to achieve unicorn status in 2021, a significant increase from the 11 startups that reached this milestone in the previous year.

This surge is fueled by substantial investment from prominent global investors seeking promising ventures in the world’s second-largest internet market.