Zetwerk To Invest INR 500 Cr To Expand Renewables Manufacturing Capacity

Contract manufacturing startup Zetwerk plans to invest INR 500 Cr over the next two years to expand its manufacturing capacity for the renewables segment. 

Zetwerk cofounder and chief operating officer Srinath Ramakkrushnan told Economic Times that the startup is looking to expand in the offshore wind segment in the US and Europe.

“We have invested around INR 300 Cr over the last few years. We are looking at investing another INR 500 Cr over the next two years. This will be funded through our balance sheet in a mix of debt and equity,” Ramakkrushnan was quoted as saying.

Citing India’s target to reach 500 gigawatts of solar energy generation capacity by 2030, the cofounder said that Zetwerk sees the solar sector in India and the US as a multi-decade opportunity.

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

The comments come days after Inc42 reported that Zetwerk commenced preliminary discussions with investment banker JP Morgan and other banks. It is eyeing a public listing in the next two years.

Ahead of the proposed listing, Zetwerk has been aggressively ramping up its manufacturing capacity.

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.

Zetwerk became a unicorn in 2021 and was last valued at $2.8 Bn. 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.

Zetwerk’s rival Infra.Market is also looking to file its draft IPO papers in December this year. Another competitor, Moglix is eyeing a public listing in the next two years.