Zetwerk Valued At At $600 Mn After $120 Mn Series D Funding Round From Greenoaks, Lightspeed

Bengaluru-based manufacturing services platform Zetwerk has raised $120 Mn (INR 870 Cr) in a Series D funding round led by US-based Greenoaks Capital and Lightspeed Venture Partners. The company’s existing investors Sequoia Capital and Kae Capital also participated in the round that values the startup at around $600 Mn.

Prior to this round, Zetwerk raised $2.2 Mn (INR 16 Cr) from InnoVen Capital in January 2020 to follow up its Series B round in December 2019, when it raised $32 Mn from Lightspeed and Greenoaks Capital. Along with this, the company had raised INR 100 Cr ($14.1 Mn) debt funding from a consortium of banks and non-banking financing companies.

The funds will be used for business expansion across geographies and categories and look at smaller M&A opportunities to grow inorganically, according to an ET report quoting cofounder Amrit Acharya.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary, Zetwerk is a B2B marketplace startup that connects large manufacturing companies with vendors and suppliers for customised products that are used as components of industrial machines and equipment.

On the demand side, the startup works with mid-to-large OEM companies from India and Southeast Asia, who require procurement of custom products and machine parts which are not available off-the-shelf in the market. In terms of supply, it engages with manufacturing small and medium enterprises (SMEs) like Bharat Wires, RN fabricators, and GM Engineers across multiple categories (like fabrication, machining, casting, forging, etc). The company charges a percentage fee from the transactions it facilitates.

With no big player directly working in the custom manufacturing space, which is estimated to be a $40 Bn market in India, Zetwerk competes with other B2B ecommerce marketplaces such as IndustryBuying, Infra.Market, Moglix, IndiaMART, Karkhana and others.

In January 2021, B2B on-demand manufacturing platform Karkhana.io has raised $1.5 Mn in a seed funding round led by Vertex Ventures Southeast Asia and India. The round also saw participation from several industry leaders and angel investors.

In the same month, Infra.Market raised INR 50 Cr ($6.8 Mn) in venture debt funding from InnoVen Capital. This was the second round of investment made by the venture debt firm in the construction and real estate marketplace after a $4.5 Mn debt funding round in September 2019.