Zetwerk Reduces Loss By 16X, Earnings Cross INR 800 Cr Mark

SUMMARY

Zetwerk posted revenue from operations of INR 828.6 Cr in FY2, a 2.5X rise from INR 321.7 Cr in FY20

Zetwerk’s loss fell to INR 41.2 Cr in FY21, from INR 661.1 Cr it witnessed in FY20

Zetwerk’s expenses dropped from INR 992 Cr in FY20 to INR 902.3 Cr in FY21

B2B manufacturing marketplace giant Zetwerk has managed to reduce its loss after tax almost by 16X in the financial year ending on March 31, 2021.

The Bengaluru-based startup posted a loss after tax of INR 41.2 Cr in FY21, a heavy drop from INR 661.1 Cr it witnessed in FY20.

Zetwerk has also seen its earnings from operations rise by 157.5% during April 1, 2020 to March 31, 2021. The startup clocked a total revenue from operations of INR 828.6 Cr in FY21, an increase from INR 321.7 Cr in FY20.

The startup’s total revenue stood tall at INR 861 Cr in FY21, as compared to INR 330.9 Cr it posted in FY20.

Interestingly, Zetwerk has also managed to reduce its total expenses by a slight manager. In FY21, Zetwerk recorded a total expenditure of INR 902.3 Cr as compared to INR 992 Cr in FY20.

The startup’s major reason behind drop in expenses seems to be reduced expenditure behind finance cost. In FY20, the startup spent INR 643.4 Cr for finance cost, which was reduced to INR 27.97 Cr in FY21. Apart from this, all the other expenses have risen by some margin in FY21.

Zetwerk has spent INR 58.4 Cr for employee benefits expenses in FY21, a nearly 2X rise from INR 27.9 Cr it utilised in FY20. In terms of purchase stock of trade, the startup shelled INR 710.7 Cr in FY21, a gradual increase from INR 250 Cr it recorded in FY20.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary, Zetwerk is a manufacturing services platform that connects manufacturing companies with vendors and suppliers for customised products, industrial machine components and other equipment.

Inc42 on December 28, 2021 exclusively reported that Zetwerk raised a fresh round of funding worth $210 Mn. The round saw participation from Green Oaks Capital, D1 Capital, IIFL, ICONIQ, Steadview Capital, among others. The funding propelled the startup’s valuation by $2.5 Bn.

The startup last year entered the unicorn club after raising $150 Mn led by D1 Capital Partners in Series E round. Inc42 had then exclusively reported the development on August 20, 2021.

In terms of competition, Zetwerk does not have a direct competitor in the Indian market, but competes with global majors such as Capgemini-owned Altran, US-based Bright Machines, Danish manufacturing services company OnRobot and others.