Zetwerk Raises INR 100 Cr In Debt Funding

B2B contract manufacturing marketplace Zetwerk has reportedly raised INR 100 Cr in debt funding from the likes of Edelweiss Group, along with one more fund and multiple high net-worth individuals (HNIs).

A Mint report citing sources noted that the debt was raised by issuing non-convertible debentures (NCDs) with around INR 83 Cr coming from Edelweiss Credit Plus Fund.

The report further added that the funding round was part of a syndicated round, with one more fund and several HNIs participating. However, while these participants chipped in the rest of the INR 17 Cr in the funding round, these were not named.

When reached out by Inc42, Zetwerk refused to comment on the matter.

The B2B marketplace’s move to raise debt comes ahead of a fresh equity round planned by the unicorn over the upcoming months. While the aforementioned sources told Mint that Edelweiss would also participate in the equity round, along with Crossover Opportunities Fund and others, the round size was not immediately clear.

Zetwerk plans to use the incoming funding to build its capital market access, make fresh acquisitions and grow the business further.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary, Zetwerk has raised $650 Mn in funding to date. Zetwerk entered the unicorn club in September last year after raising $150 Mn in a round led by New York-based D1 Capital Partners. In December last year, it raised $210 Mn led by Green Oaks Capital.

Zetwerk is a manufacturing services platform, which connects manufacturing companies with vendors and suppliers for customised products, industrial machine components and other equipment. 

It competes with the likes of InfraMarket.com, Udaan, Moglix and OfBusiness.

Last July, Zetwerk acquired three businesses for a total of INR 100 Cr to strengthen its different verticals. It acquired SharpTank for the oil and gas vertical, Pinaka Aerospace Solutions for aerospace, defence, and infrastructure components and Wheels India’s fabrication unit.

Later in November, the B2B unicorn picked up US-based manufacturing services company Unimacts at a valuation of $39 Mn.

In FY22, the B2B startup posted a loss of INR 59.7 Cr, up 45% from INR 41.1 Cr in FY21. Zetwerk’s operating revenue jumped 5.9X, reaching INR 4,960.5 Cr in FY22 from INR 835.4 Cr in FY21.

Meanwhile, the B2B startup’s total expenses surged 465% to INR 5,145.4 Cr in FY22 from INR 909 Cr in FY21.