The logistics and supply chain industries have several elements that are linked to each other to ensure a smooth flow of productivity. The supply chain industries are evolving with the use of the right technology and other methods.
The supply chain industry has always been a complex subject and of keen importance to the efficient operation of an enterprise. One such company called Zetwerk in India is one of the leading providers of end-to-end manufacturing supply chain services to cater to their customers’ needs.
Let’s discover everything about Zetwerk’s growth over the years: founders, business model, revenue model, funding, valuation, and a lot more.
Zetwerk Company Profile
| STARTUP NAME | ZETWERK |
|---|---|
| Headquarters | Bangalore, Karnataka, India |
| Sector | Industrial Machinery Manufacturing |
| Founder | Vishal Chaudhary, Amrit Acharya, Srinath Ramakkrushnan, and Rahul Sharma |
| Founded | 2018 |
| Valuation | $3.1 billion (December 2024) |
| Website | zetwerk.com |
About Zetwerk
Zetwerk – Industry
Zetwerk – Founders and Team
Zetwerk – Startup Story
Zetwerk – Mission
Zetwerk – Name and Logo
Zetwerk – Service
Zetwerk – Business Model
Zetwerk – Revenue Model
Zetwerk – ESOP
Zetwerk – Challenges Faced
Zetwerk – Funding and Investors
Zetwerk – Shareholding
Zetwerk – Acquisitions
Zetwerk – Growth
Zetwerk – Financials
Zetwerk – Partnership
Zetwerk – Awards and Achievements
Zetwerk – Competitors
Zetwerk – Future Plans
About Zetwerk
Zetwerk, based in Bangalore is a supply chain management company that engages in connecting with manufacturers to give customized results. This Bangalore-based company provides end-to-end manufacturing solutions to help customers reduce costs, optimize suppliers, and execute production in a fast-paced manner.
The company also has partners worldwide who deal in capital goods and consumer goods categories and offer a full spectrum of manufacturing services.
Zetwerk – Industry
The Statista analysis indicates that there is significant growth potential for the Machinery and Equipment market. Value added is anticipated to rise at a compound annual growth rate (CAGR) of 8.68%.
Furthermore, the projection projects that the market’s output will reach US $60.43 billion in 2024, growing at a predicted CAGR of 2.11% between 2024 and 2028. These numbers highlight an upward trend in value-added and total output, pointing to a bright future for the machinery and equipment industry.
Zetwerk – Founders and Team
Vishal Chaudhary
Vishal Chaudhary is the Co-Founder of Zetwerk. He is an alumnus of IIT, Kharagpur in Chemical Engineering. He started his career working as a Project Manager at ITC working as a Lead and then Organisation & Business Engine at RIVIGO.
Amrit Acharya
Amrit Acharya is the Co-Founder and CEO of Zetwerk company. Holding a degree in electrical engineering from IIT, Madras. During his career growth, Amrit has been associated with many companies. Before starting Zetwerk, he worked at Robert Bosch, Avaya, ITC, McKinsey & Company, Foundation Capital, and Monsanto Growth Ventures.
Shevaughn Pimenta
Srinath Ramakkrushnan
Srinath Ramakkrushnan is the Co-Founder of Zetwerk. Srinath holds a bachelor’s degree from IIT, Madras in Mechanical Engineering. Before venturing to become the co-founder of Zetwerk, Srinath has been associated with industries. Some of them are General Motors, Acumen Fund, Selco India, Austrian Energy & Environment (Now Acquired by Doosan), ITC Limited, and BlackBuck (Zinka Logistics Solutions Pvt. Ltd.), among others.
Rahul Sharma
Rahul Sharma is an alumnus of IIT, Roorkee. Currently, he is one of the founders of Zetwerk. He was also the co-founder of Prepnut, which was a platform to help job seekers prepare for interviews and other exams.
Rahul Sharma started his career as a Senior Field Engineer at Schlumberger and as a Head at BlackBuck (Zinka Logistics Solutions Pvt. Ltd.).
The company has employees ranging from 1,000 to 5,000, as per LinkedIn.
Zetwerk – Startup Story
In order to transform supply chain management, Acharya and his three IIT classmates, Srinath Ramakkrushnan, Vishal Chaudhary, and Rahul Sharma, created Zetwerk in 2018. Zetwerk is a B2B software company. Within its first month of operation, the company quickly obtained a term sheet for a $1.5 million seed round, indicating early promise.
But in an unexpected turn of events, Zetwerk changed course in a matter of thirty days, going from a software-centric business model to a B2B marketplace that specialized in supplier sourcing and custom manufacturing. Even though it was a risky move, Acharya was dubious about it because investors like Sequoia and Kae Capital were in the dark about it. When Acharya broke the news to them, he was afraid of their response, but he was relieved because both investors applauded the change.
Zetwerk’s journey as a dynamic and adaptive participant in the B2B bespoke manufacturing sector began at this crucial juncture, underscoring the rewarding yet unpredictable character of the startup landscape.
Zetwerk – Mission
The company’s mission on its website states, “To change the way manufacturing is done.”
Zetwerk – Name and Logo
Zetwerk’s legal name is Zetwerk Manufacturing Businesses Pvt. Ltd.
Zetwerk – Service
Zetwerk provides various services, including:
- Manufacturing Services
- Zetwerk Managed Inventory
- Quality Control
- Managed Supply Chain
Zetwerk – Business Model
The core of Zetwerk’s business model is the production of operating systems that maximize productivity, transparency, and efficiency. The organization guarantees a smooth experience by giving clients total control over their projects through simple accessibility and tracking.
Zetwerk produces anything from clothing to aircraft engines, serving a wide range of sectors. Its production solutions put clarity, quality, and precision first, providing customers with a wide selection of options that are customized to suit exacting requirements at prices comparable to those of an industrial setting.
Zetwerk – Revenue Model
Zetwerk makes revenue from different resources; some of the prominent ones are:
- Fabricated Manufacturing Inputs: A sizeable portion of Zetwerk’s income comes from providing major manufacturing setups with constructed parts and infrastructure inputs to assist their production processes.
- Chain of Supply Services: The business manages the procurement, production, and delivery of manufactured inputs for manufacturing clients, offering complete supply chain solutions.
- Purchasing Health Care: In order to boost profits, Zetwerk has expanded into the healthcare procurement space by locating and delivering medical components and equipment.
- Acquisitions in the Apparel Sector: Zetwerk expands its revenue stream by sourcing fabrics, machinery, and components for garment production through its venture into the apparel industry procurement market.
Nitin Konde
Zetwerk – ESOP
Zetwerk has added fresh employee stock options (ESOPs) worth INR 541 crore (about $64 million) under its ESOP Plan 2018. This is the first ESOP expansion by the Bengaluru-based company this year.
The board approved changes to Zetwerk’s Employee Stock Option Plan 2018, adding 1.25 crore (12,503,900) new stock options, as per filings with the Registrar of Companies.
Zetwerk, the B2B marketplace specializing in custom manufacturing, has demonstrated a proactive approach to employee benefits through strategic moves in its Employee Stock Options (ESOPs). As part of its commitment to empowering its employees, the corporation reportedly added Rs 4.77 crore to its pool of stock options as per news report of September 24, 2020. Zetwerk awarded 24 worthy employees 917 stock shares through the ESOP program as part of this initiative.
But a later event, according to a March 2021 news article, demonstrated the company’s financial stability when it purportedly repurchased $8.3 million worth of ESOPs from both early investors and employees. This action demonstrates Zetwerk’s dedication to thanking its employees and underscores the company’s wise financial choices that benefit both stakeholders and employees.
Zetwerk – Challenges Faced
The original idea of Zetwerk, which was founded in December 2018, was to arrange suppliers for businesses. After a seed round in May 2018, the team developed the software over three months. When the device was shown to customers, they gave it positive reviews; still, two major problems surfaced.
First off, the software sales cycle for Indian clients took more than a year, which caused a delay in the collection of income. Secondly, Zetwerk faced a hurdle as an early-stage startup because it was impossible for them to get orders without being able to travel abroad for international clients like Siemens and GE, where decision-making took place outside of the Indian headquarters.
In the face of these obstacles, manufacturers kept asking to use Zetwerk’s software to find new suppliers.
Zetwerk – Funding and Investors
Zetwerk has raised a total of $873.3 million across 18 funding rounds. Key investors include Lightspeed Venture Partners, Accel, Khosla Ventures, Peak XV Partners, and InnoVen Capital. The funding round in December 2024 valued the company at $3.1 billion, supporting its expansion into renewables, consumer electronics, and aerospace.
Here are the funding details:
| Date | Series Name | Funding Amount | Investors |
|---|---|---|---|
| 6 March, 2025 | Series F | $5 million | Arc Investments, Oriental Biotech |
| 12 December, 2024 | Series F | $70 million | Khosla Ventures, Rakesh Gangwal |
| March 7, 2024 | Venture Round | $20 million | Rakesh Gangwal |
| October 18, 2023 | Series F | $120 million | Avenir Growth Capital |
| March 5, 2023 | Debt Financing | $12 million | Edelweiss Financial Services |
| December 28, 2021 | Series F | $210 million | Greenoaks |
| August 23, 2021 | series E | $150 million | Avenir Growth Capital, IIFL Asset Management Limited, D1 Capital Partners |
| February 23, 2021 | series D | $120 million | Greenoaks Capital, Lightspeed Venture Partners, Sequoia Capital India |
| February 7, 2020 | series C | $21 million | Greenoaks Capital, Accel, Kae Capital |
| January 29, 2020 | Debt financing | $2.2 million | Innoven capital |
| December 11, 2019 | series B | $32 million | Lightspeed Venture Partners, Greenoaks Capital, Sequoia Capital |
| March 27, 2019 | series A | $9 million | Accel, Sequoia Capital India, Kae Capital |
Zetwerk – Shareholding
Zetwerk’s shareholding pattern as of January 2025, sourced from Tracxn:
| Zetwerk Shareholders | Percentage |
|---|---|
| Srinath Ramakkrushnan | 7.8% |
| Amrit Acharya | 7.0% |
| Rahul Sharma | 0.4% |
| Vishal Chaudhary | 0.4% |
| Khosla Ventures | 1.0% |
| Baillie Gifford | 0.7% |
| The Chinkerpoo Family Trust | 0.3% |
| Greenoaks | 21.7% |
| Sequoia Capital | 13.4% |
| Accel | 8.8% |
| D1 Capital Partners Master | 5.7% |
| Lightspeed Venture Partners | 11.3% |
| Kae Capital | 4.0% |
| Avenir Growth Capital | 5.4% |
| Kalysta Capital | 1.2% |
| Steadview | 0.9% |
| Footpath Ventures | 0.8% |
| Wheelhouse Ventures | 0.7% |
| IIFL Asset Management | 0.8% |
| Aroa Venture Partners | <0.1% |
| QED Innovation Labs | <0.1% |
| ScaleX Partners | <0.1% |
| ACORN | 0.2% |
| Aex | <0.1% |
| Acorn Heavy Industries | 0.4% |
| Angel | 0.6% |
| Other People | 1.5% |
| ESOP Pool | 4.5% |
| Other Investors | 0.4% |
| Total | 100.0% |
Zetwerk – Acquisitions
Zetwerk has acquired four companies to date.
Here are the details:
| Company Name | Date | Amount |
|---|---|---|
| Unimacts | November 30, 2022 | $39 million |
| Pinaka Aerospace Solutions | July 4, 2022 | – |
| Sharp Tanks | June 30, 2022 | – |
| Wardha fabrication | June 30, 2022 | – |
Zetwerk – Growth
Zetwerk, some of the growth highlights are:
- It has reduced lead times by 50% as of February 2024.
- It has manufactured more than 9 million parts as of February 2024.
- It has over 1800+ active customers as of February 2024.
- It has been delivered to 20+ countries as of February 2024.
Zetwerk – Financials
Zetwerk has shown significant revenue growth over the past few years, but its losses have widened due to increasing expenses. Below is a detailed breakdown of its financial performance from FY24 to FY20.
| Particulars | FY24 | FY23 | FY22 |
|---|---|---|---|
| Revenue | INR 14,596.8 crore | INR 11,595.9 crore | INR 5,061.8 crore |
| Expenses | INR 15,090.0 crore | INR 11,706.2 crore | INR 5,145.5 crore |
| Profit/Loss | INR -919.2 crore | INR -101.6 crore | INR -59.8 crore |
Zetwerk’s revenue increased by 26% YoY from INR 11,595.9 crore in FY23 to INR 14,596.8 crore in FY24, but losses widened from INR 101.6 crore to INR 919.2 crore, mainly due to rising expenses.
Zetwerk Revenue:
Zetwerk’s revenue from operations saw a significant rise, driven by increased product/service sales.
| Revenue Breakdown | FY24 | FY23 |
|---|---|---|
| Revenue from operations | INR 14,435.7 crore | INR 11,448.7 crore |
| Other income | INR 161.0 crore | INR 147.3 crore |
| Total Revenue | INR 14,596.8 crore | INR 11,595.9 crore |
Revenue from operations increased by 26%, growing from INR 11,448.7 crore in FY23 to INR 14,435.7 crore in FY24, supported by higher sales.
Zetwerk Profit/Loss:
The company’s losses have deepened significantly over the past year.
| Profit/Loss Breakdown | FY24 | FY23 |
|---|---|---|
| Profit before tax | INR -865.1 crore | INR -110.2 crore |
| Tax Expense | INR 54.1 crore | INR -8.6 crore |
| Profit/Loss | INR -919.2 crore | -INR 101.6 crore |
Losses jumped nearly 9x, from INR 101.6 crore in FY23 to INR 919.2 crore in FY24, driven by rising expenses and exceptional costs.
Zetwerk Expenses:
Expenses surged, particularly in materials, employee costs, and other operational expenses.
| Expense Breakdown | FY24 | FY23 |
|---|---|---|
| Cost of materials consumed | INR 3,949.3 crore | INR 3,189.2 crore |
| Purchases of stock-in-trade | INR 9,431.0 crore | INR 7,424.3 crore |
| Employee benefit expense | INR 461.3 crore | INR 352.1 crore |
| Finance costs | INR 449.2 crore | INR 297.4 crore |
| Amortization & Depreciation | INR 192.3 crore | INR 36.0 crore |
| Other expenses | INR 820.4 crore | INR 375.2 crore |
| Total Expenses | INR 15,090.0 crore | INR 11,706.2 crore |
Total expenses rose by 29%, from INR 11,706.2 crore in FY23 to INR 15,090 crore in FY24, mainly due to higher raw material and financing costs.
Quick Summary:
- Revenue Growth: 26% increase YoY, driven by strong operations.
- Rising Losses: Losses widened nearly 9x due to increased spending.
- Higher Expenses: Major cost increases in raw materials, employee benefits, and financing costs.
- Financial Challenges: The company may need to optimize costs and explore funding strategies to improve profitability.
Zetwerk – Partnership
Zetwerk, IPO-bound company, partnered with LONGI (the worldwide leader in solar technology) in July 2023 and has also partnered with other companies like:
- Tata Steel
- Sterling and Wilson
- Flipkart
Zetwerk – Awards and Achievements
Zetwerk has achieved several achievements and earned numerous awards. Among the notable ones are:
- The company has bagged an order of Rs 126 crore from L&T for the bullet train project in April 2022.
- In the year 2022, the company won the prestigious Mint StartupIcon Award in the infrastructure and logistics category.
- Zetwerk won the 2022 Startup Leader of the Year Award.
Zetwerk – Competitors
The company has some competitors; they are as follows:
- Arconic Lafayette
- Bloom Procurement Services
- wherEX
- Teegara
- Indiamart
- Moglix
- Udaan
- Industrybuying
- Chizel
- Infra.Market
Zetwerk – Future Plans
Zetwerk aims to launch an IPO in the next 12 to 18 months, as stated by co-founder and CEO Amrit Acharya.
Zetwerk started talks with JP Morgan for its IPO and is now planning to raise $1 billion through the public offering. Reports say the startup is working with investment bankers to prepare for its Mumbai listing next year.
In November 2024 Zetwerk also announced plans to invest INR 500 crore over the next two years to expand its renewables manufacturing capacity.
Zetwerk unveiled a visionary strategy allocating Rs 1,000 crore to bolster its production of consumer electronics. Rahul Sharma, a co-founder, disclosed the company’s intention to actively pursue government partnerships, diversify into new markets, and extend its manufacturing operations outside of the northern region.
Zetwerk’s dedication to significant expansion and market presence in the dynamic consumer electronics industry is reflected in this strategic endeavor.
FAQs
Who is the Zetwerk founder?
Vishal Chaudhary, Amrit Acharya, Srinath Ramakkrushnan, and Rahul Sharma are the Zetwerk founders.
What is Zetwerk?
Zetwerk is a B2B e-commerce platform that connects manufacturers with buyers, focusing on industries like automotive, energy, and engineering. It simplifies sourcing and supply chain processes for large-scale production.
Is Zetwerk unicorn?
Yes, Zetwerk entered the unicorn club in 2021.
What does Zetwerk do?
Zetwerk provides end-to-end supply chain solutions to companies.
What is Zetwerk revenue?
Zetwerk revenue from operations increased by 26%, growing from INR 11,448.7 crore in FY23 to INR 14,435.7 crore in FY24, supported by higher sales.
What is Zetwerk valuation?
Zetwerk valuation as of December 2024 is $3.1 billion.
What is Zetwerk business model?
Zetwerk is a B2B manufacturing marketplace. It connects businesses with manufacturing suppliers for custom parts, industrial goods, and machinery. The platform helps companies outsource production, manage procurement, and streamline supply chains. Zetwerk earns revenue through commissions on transactions and value-added services like quality control and logistics.
What is Zetwerk funding?
Zetwerk has raised a total of $873.3 million across 18 funding rounds. Key investors include Lightspeed Venture Partners, Accel, Khosla Ventures, Peak XV Partners, and InnoVen Capital.
