IPO-Bound Zetwerk To Raise Around $30 Mn At $3.1 Bn Valuation

SUMMARY

Zetwerk is raising the funding from Indian family offices and high-net-worth individuals with an eye on increasing domestic ownership

The startup received the board’s approval for the fundraise, which is a part of its December funding round, last week

The Peak XV-backed B2B marketplace has finalised six bankers to helm its upcoming IPO

IPO-bound B2B manufacturing unicorn Zetwerk is in talks to raise $25 Mn to $30 Mn from Indian family offices and high-net-worth individuals (HNIs), sources told Inc42.

The funding round will value the startup at $3.1 Bn and is aimed at increasing domestic ownership in the startup, the sources added.

Zetwerk declined to comment on the development.

Meanwhile, sources told Moneycontrol that the company received the board approval for the fundraise last week, adding that the fundraise is part of Zetwork’s funding round of December 2024.

In December, the startup raised $70 Mn from Silicon Valley-based Khosla Ventures, Indigo Airlines cofounder Rakesh Gangwal, Baillie Gifford, among others. Overall, Zetwerk secured $90 Mn in funding in 2024.

Founded in 2018 by Srinath Ramakkrushnan, Amrit Acharya, Rahul Sharma, and Vishal Chaudhary, Zetwerk connects vendors and suppliers with manufacturing companies for procuring industrial machine components.

The startup entered the unicorn club in 2021. It has raised a total funding of over $700 Mn till date and counts the likes of Peak XV Partners, Lightspeed, Mars Growth Capital, among others, as its backers.

Last year, the startup also announced its foray into IT hardware and electric vehicle (EV) component manufacturing. Additionally, it set aside INR 1,000 Cr ($122 Mn) to invest in electronics manufacturing.

Zetwerk competes with the likes of Moglix, OfBusiness, among others.

The latest fundraise comes close on the heels of reports that the startup is looking to raise up to $500 Mn Bn via its initial public offering (IPO). In October last year, Inc42 reported that the company had initiated discussions with investment bankers like JP Morgan, Axis Capital, Goldman Sachs, Jefferies Financial Group, JM Financial, and Kotak Mahindra Bank for its upcoming public issue.

Last month, reports surfaced that the Peak XV-backed B2B marketplace finalised six bankers – Axis Capital, Goldman Sachs Group, Jefferies Financial Group, JM Financial, JPMorgan Chase & Co and Kotak Mahindra Bank – to helm its potential $500 Mn IPO later this year.

The development also comes at a time when a host of Indian startups are raising funds in the run up to their public listings. Last month, Infra.Market bagged INR 1,050 Cr in its pre-IPO round at a valuation of about $2.8 Bn.

Earlier this month, B2B seafood startup Captain Fresh bagged INR 250 Cr in its ongoing pre-IPO funding round led by existing investors Prosus Ventures, Accel and Tiger Global. Last month, B2B ecommerce platform ArisInfra Solutions also undertook a pre-IPO placement to raise INR 80 Cr.