Business-to-business (B2B) e-commerce unicorn Zetwerk is raising $67 million (approximately Rs 565 crore) in fresh funding, propelling its valuation to a notable $3 billion. The investment is led by Khosla Ventures and includes contributions from The Schiehallion Fund, solidifying Zetwerk’s position in the competitive B2B landscape.
Major Players Backing the Round
Zetwerk’s board has approved the issuance of 1,30,68,091 Series F3 compulsory convertible preferred shares at a price of Rs 432.7 per share, according to regulatory filings. This funding round sees substantial participation from well-known investors:
- Khosla Ventures is leading the charge with Rs 253 crore.
- The Schiehallion Fund is contributing Rs 169 crore.
- Acron Heavy Industries, AEX4 LLC, and The Chinkerpoo Family Trust are collectively investing Rs 143 crore.
This financial boost underscores investor confidence in Zetwerk’s growth trajectory and potential.
Where Will the Funds Go?
The Bengaluru-based company intends to channel these funds into growth initiatives and general corporate purposes, including capital expenditure. While specifics remain under wraps, the funding aligns with Zetwerk’s ambitious expansion plans.
Zetwerk has already amassed approximately $740 million in total funding, including a $120 million round led by Avenir Growth Capital in October 2023 and $20 million raised earlier this year in March.
From Startups to a Global B2B Powerhouse
Founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk has carved a niche in the manufacturing sector. Acting as a bridge between buyers and suppliers, it specializes in enabling large-scale manufacturing jobs, ranging from machining and casting to forging and galvanizing machine parts.
Operating across 15 countries, Zetwerk serves over 100 customers in more than 25 industries, from India to North America and the Middle East to Southeast Asia.
Financial Metrics and Market Position
Zetwerk’s financial growth has been nothing short of impressive. In FY23, its revenue skyrocketed 2.3x to Rs 11,448 crore, although losses also grew by 81%, reaching Rs 109 crore. The company has not yet filed its FY24 annual results.
The competitive B2B e-commerce market pits Zetwerk against notable players like Infra.Market, OfBusiness, and Moglix. However, with this funding round and reports of a planned $1 billion initial public offering, Zetwerk appears poised to strengthen its foothold further.
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