Zetwerk, a Bengaluru-based contract manufacturing startup, has raised $70 million in its latest funding round that has taken its valuation to $3.1 billion. This round was led by Khosla Ventures and Rakesh Gangwal, co-founder of IndiGo Airlines, with the involvement of new investor Baillie Gifford.
The new fund injected takes Zetwerk’s total funding to approximately $700 million since it started in 2018.

Company Overview

Founded by IIT alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk is an managed marketplace for contract manufacturing. The platform connects industrial and consumer businesses with a global network of small-scale manufacturers that support processes such as fabrication, machining, casting, forging, and galvanizing.

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 Today, Zetwerk connects over 2,000 customers through more than 10,000 suppliers across India, the US, Vietnam, and Mexico, with 80-85% of revenue coming from repeat customers.

The investment amount is $70 million, led by Khosla Ventures and Rakesh Gangwal based in Silicon Valley. This has UK-based fund Baillie Gifford investing for the first time in this Series F round that Zetwerk is working on. In this round alone, it has raised the total amount of $100 million in the funding round.

The valuation increased to $3.1 billion, up from its last fund raise in the previous round in 2023, which was valued at $2.7 billion.

Strategic Goals

Zetwerk intends to use the fresh capital for:

• Scaling up International Operations: The company aims to scale up its operations in key international markets, such as the US and Europe, to diversify revenue streams and increase global presence.
• Sector Diversification: To further strengthen its presence in key sectors like renewable energy, consumer electronics, aerospace, and IT hardware. Renewable energy is currently 40% of the company’s revenue.
• Prepare for IPO: Lay the groundwork for an initial public offering (IPO) in the 2025-26 fiscal year by building a long-term shareholder base and engaging with investment banker

Financial Performance

In the fiscal year 2023-24 (FY24), Zetwerk reported a 25% increase in operating revenue, reaching ₹14,500 crore (approximately $1.8 billion). However, the company’s losses tripled to ₹470 crore (around $58 million) during the same period. 

Despite the increased losses, Zetwerk’s gross merchandise value (GMV) has grown to ₹17,564 crore (about $2.2 billion), with an adjusted EBITDA of ₹191 crore (approximately $24 million). The company also holds an order book worth ₹12,839 crore (around $1.6 billion), indicating strong future demand. 

Leadership Perspective

Amrit Acharya, co-founder and CEO of Zetwerk, said the company was focused on international expansion and building a sustainable business model. “We are working to build a long-term shareholder base for the company—investors who will be with us not just today, but for the next 10 years. This is all preparatory work leading up to the initial public offering (IPO).

Zetwerk operates in the rapidly evolving contract manufacturing and B2B e-commerce sectors, providing solutions that address challenges such as production delays, budget overruns, and quality issues. 

The company enhances supply chain efficiency and transparency by offering a platform that connects businesses with a diverse network of manufacturers. The expansion of the company into sectors like renewable energy and aerospace aligns with global trends toward sustainability and technological advancement.
Future Outlook

The newly obtained funding will put the company in a strong position to become a global leader in contract manufacturing and B2B e-commerce. Focusing on international markets and diversifying sectors along with IPO preparation indicates long-term growth and value creation commitment from the company.

 This further increases the chances for expansion as Zetwerk looks forward to broadening its service capabilities worldwide and capitalizing on all future prospects in the manufacturing space.