Venture Capital: B2B Parts Maker Zetwerk Reels In $120M
The Bengaluru, India-based startup scored a valuation of $600M.
Zetwerk, an Indian startup, aggregates manufacturing services such as fabrication, machining, casting, and forging of machine parts and offers them to enterprises across the world. Its providers are drawn from the SME sector, while buyers are typically EPCs and OEMs. The firm raised $120 million in a Series D round led by existing investors, Lightspeed Venture Partners, and Greenoaks Capital. Continuing investors Sequoia Capital and Kae Capital also invested. (Moneycontrol)
Indian Institute of Technology (IIT), Madras alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary founded Zetwerk in 2018.
The startup specializes in custom manufacturing of parts not normally found in standard inventories. According to TechCrunch, it reported revenues of $43.9 million for the year ended March. That represented a growth of 20X from the previous year.
Its customer base was previously located mostly in India and South-East Asia but now includes as many as 25 clients from the U.S., Canada, Europe, and other international markets.
On an aggregate basis, Zetwerk now boasts of over 250 customers and 2,000 suppliers. It serves industries as varied as process plants, oil and gas, renewables, aerospace, steel, automotive, consumer electronics, and apparel.
“Zetwerk’s operating system for manufacturing has digitized multiple supply chains end-to-end, ensuring on-time delivery and high-quality standards. This has led to rapid growth in India and internationally, with the potential to quickly become one of the most important manufacturing platforms globally,” said Neil Shah, partner at Greenoaks Capital.
Shailesh Lakhani, managing director at Sequoia India told TechCrunch that Zetwerk had created a unique space and did not compete with any other firm.
Vaibhav Agarwal, a partner at Lightspeed, thinks that the domestic Indian market is as large as $40 billion to $60 billion.
Add to that a steady shift out of China due to geopolitical tensions, and Zetwerk has significant growth potential.
“The global manufacturing industry has had to swiftly adjust to the new normal, and digital solutions have become essential. Zetwerk accelerates this digital transformation with state-of-the-art productivity tools and remote project management. 2021 will see a further pace of growth as companies seek to diversify their procurement to minimize disruptions and become more agile and resilient,” said Amrit Acharya, Co-founder & CEO, Zetwerk.
Use of funds
Zetwerk will use the proceeds from the latest round to scale up its offerings.
It will help customers translate their digital designs into physical products through access to a wider range of fully verified, flexible manufacturing capacity from small manufacturers (SMEs).
Image Source: Zetwerk
Latest Alternative Investment News
Bank of Korea Governor Lee Ju-yeol, when speaking at a parliamentary session on Wednesday, said crypto-assets such as bitcoin had no intrinsic value and were victim to highly volatile price…
MicroStrategy describes bitcoin as “a dependable store of value.” In an announcement today, MicroStrategy (NASDAQ: MSTR) said it had invested an additional $1.026 billion in the purchase of 19,452 bitcoins…
Bloomberg reports that Klarna Bank AB, the Swedish fintech startup that was valued at $10.65 billion in September, may raise another $1 billion. But this time its valuation could be…
Tyme has partnered with JG Summit to Launch Digital Bank for the Philippines. Digital banking network Tyme announced Tuesday its raise of $110 million from new investors Apis Growth Fund…