Zetwerk in Talks to Raise $30M Ahead of 2025 IPO
B2B manufacturing unicorn Zetwerk is in discussions with family offices and high-net-worth individuals (HNIs) to raise between $20-30 million at a $3.1 billion valuation. The funding round comes as the company prepares for its initial public offering (IPO) in 2025, aimed at strengthening its capitalization table before listing on Indian stock exchanges.
The company recently secured $67 million from investors, including Khosla Ventures, The Schiehallion Fund, Acron Heavy Industries, AEX4 LLC, and The Chinkerpoo Family Trust, bringing its total funding to approximately $740 million. Zetwerk connects customers with suppliers across various industries, including consumer electronics, home appliances, and aerospace.
IPO Preparations Underway
For its upcoming IPO, which could raise at least $500 million, Zetwerk has appointed several prominent financial institutions as bankers. These include Axis Capital Ltd., Goldman Sachs Group Inc., Jefferies Financial Group Inc., JM Financial Ltd., JPMorgan Chase & Co., and Kotak Mahindra Bank. The company counts Peak XV Partners and Lightspeed India Partners among its key investors.
Strong Financial Performance in FY24
Zetwerk demonstrated robust growth in fiscal year 2024:
- Operating revenue increased 25% year-over-year to Rs 14,436 crore
- Gross merchandise value (GMV) grew 35% to Rs 17,564 crore
- EBITDA reached Rs 191 crore
- Renewable and precision manufacturing segments contributed 92% of total GMV
- North American operations accounted for 21% of business
The company has secured significant orders from major industrial players, including L&T, NTPC, and Siemens. In a previous funding round last year, Zetwerk raised $90 million from investors, including Khosla Ventures, IndiGo Airlines co-founder Rakesh Gangwal, Bailie Gifford, Greenoaks, and Avenir.