Zetwerk Secures INR 100 Cr in Debt Funding
- ByStartupStory | March 6, 2023
According to sources cited in a Mint report, Zetwerk, a B2B contract manufacturing marketplace, has raised INR 100 crore in debt funding from Edelweiss Group, another fund, and several high net-worth individuals (HNIs). The funding was reportedly secured through the issuance of non-convertible debentures (NCDs), with the majority of the investment, approximately INR 83 crore, coming from Edelweiss Credit Plus Fund.
As part of a syndicated funding round, Zetwerk, a B2B contract manufacturing marketplace, has reportedly raised INR 100 crore in debt funding from Edelweiss Group, one more fund, and multiple high net-worth individuals (HNIs). Although the remaining INR 17 crore of the funding round was contributed by unnamed participants, according to a Mint report citing sources. Zetwerk plans to conduct a new equity round in the coming months, and it is anticipated that Edelweiss and Crossover Opportunities Fund, among others, will participate. However, the precise size of the equity round has yet to be determined.
Zetwerk intends to employ the newly acquired funds to expand its capital market access, acquire new businesses, and develop its operations. Zetwerk was established in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary, and has raised a total of $650 million in funding. Zetwerk joined the unicorn club in September 2020 after securing $150 million in a funding round led by D1 Capital Partners. In December of that year, it raised $210 million in a funding round led by Green Oaks Capital.
Zetwerk operates as a manufacturing services platform, facilitating connections between manufacturing firms and vendors/suppliers for the production of customised items, industrial machine components, and other equipment. The company faces competition from several other entities, including InfraMarket.com, Udaan, Moglix, and OfBusiness.
Zetwerk, a B2B startup, strengthened its various verticals by acquiring three businesses for a total of INR 100 Cr in July. The acquisitions included SharpTank for oil and gas, Pinaka Aerospace Solutions for aerospace, defence, and infrastructure components, and Wheels India’s fabrication unit. In November, the company also acquired US-based Unimacts for $39 Mn.
Despite a 45% increase in losses to INR 59.7 Cr in FY22 from INR 41.1 Cr in FY21, Zetwerk’s operating revenue rose 5.9X to INR 4,960.5 Cr in FY22 from INR 835.4 Cr in FY21. However, the B2B startup’s total expenses surged 465% to INR 5,145.4 Cr in FY22 from INR 909 Cr in FY21.
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