Zetwerk Gets Board Nod To Raise INR 565 Cr

SUMMARY

Zetwerk has received approval from the board to raise INR 565.5 Cr (around $66.6 Mn) in a funding round to be led by Khosla Ventures

Zetwerk’s board passed a resolution to issue 1,30,68,091 Series F3 compulsory convertible preferred shares at an issue price of INR 432.7 each

The company had already initiated discussions with investment banker JP Morgan for its potential IPO

Ecommerce giant Zetwerk has received approval from the board to raise INR 565.5 Cr (around $66.6 Mn) in a funding round to be led by Khosla Ventures, along with participation from The Schiehallion Fund and others.

Of the total amount, about INR 253.2 Cr will be invested by Khosla Ventures, while INR 169 Cr will be infused by The Schiehallion Fund, the company said in a filing.

As per the filing, Zetwerk’s board passed a resolution to issue 1,30,68,091 Series F3 compulsory convertible preferred shares at an issue price of INR 432.7 each.

This comes close on the heels of the company looking to raise $1 Bn via initial public offering (IPO). It had already initiated discussions with investment banker JP Morgan for its potential IPO.

It was earlier reported that the company was planning to invest INR 500 Cr over the next two years to expand its manufacturing capacity for the renewables segment, while also looking to expand in the offshore wind segment in the US and Europe.

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

It became a unicorn in 2021. The company 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.

Meanwhile, Earlier this year, the startup 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.