ZETWERK Hits $3.1 Bn Valuation Mark with its Latest $70 Mn Fundraise

-The funding round was led by Khosla Ventures and Rakesh Gangwal, cofounder of IndiGo Airlines with participation of other investors.

-In 2020-21, the startup expanded beyond India, venturing into international markets such as North America.

-In August 2021, ZETWERK raised approximately $150 million funding, which made the startup a unicorn with a valuation of $1.3 billion.

ZETWERK, a contract manufacturing startup, has raised $70 million in its latest funding round, bringing its valuation to $3.1 billion. The funding round was led by Khosla Ventures and Rakesh Gangwal, cofounder of IndiGo Airlines. 

Other notable investors included Baillie Gifford, Greenoaks, and Avenir Growth. This new funding follows a previous raise of $20 million in March 2024, totaling $90 million raised by ZETWERK in 2024 alone.

“Every company that needs manufacturing capabilities is focused on making their supply chains more resilient and less prone to geopolitical risk. ZETWERK has quickly become a leading manufacturing marketplace that gives customers options around the world to build in any arena from industrials and consumer electronics to aerospace and defense. We are excited to partner with ZETWERK in this next phase of global growth,” said Jai Sajnani of Khosla Ventures.

ZETWERK has made strategic moves to diversify its services and fuel global growth. In 2020-21, the startup expanded beyond India, venturing into international markets such as North America.

Additionally, ZETWERK broadened its portfolio by adding a Consumer business to complement its focus on the Industrials segment. These decisions have positioned the startup for long-term growth, particularly in international markets.

As of September 30, 2024, it reported impressive figures, with the Industrials segment, including Renewables and Precision Manufacturing, contributing 92% to its total Gross Merchandise Value (GMV). 

International GMV made up 21% of the business. The startup secured orders worth INR 12,839 Cr (approximately $1.51 billion) at the group level.

Since its inception in 2018, ZETWERK has delivered approximately $5 billion in lifetime GMV, including the production of over 100 million globally manufactured items. The startup has positioned itself as a key manufacturing partner for over 2,000 customers across India, North America, and Europe. 

ZETWERK works with more than 10,000 suppliers located in countries such as India, the US, Vietnam, and Mexico. Notably, 20% of its supply comes from locations outside India, allowing the startup to meet global customer demand with a diverse, international supplier network.

Around 80-85% of ZETWERK’s GMV has been driven by increased spending from repeat customers. 

“The manufacturing sector has long grappled with challenges like time delays, budget overruns, quality issues, and limited supplier transparency. These persistent issues have significantly impacted production timelines. Now, as countries strive to diversify their supply chains in response to global geo-political shifts, a new layer of complexity has been added. ZETWERK is rapidly positioning itself as a key partner for global customers seeking to navigate this near-shoring/on-shoring landscape,” Amrit Acharya, cofounder & CEO, of ZETWERK Manufacturing told Hindu Business Line.

ZETWERK said this has played a pivotal role in helping its customers build a wide range of complex and critical infrastructure and products. The startup's manufacturing capabilities have contributed to the creation of trains, wind turbines, solar plants, airports, bridges, planes, phones, TVs, and more. 

Vishal Chaudhary, Amrit Acharya, Srinath Ramakkrushnan, and Rahul Sharma founded Zetwerk in 2018. Within just three years of inception, the startup achieved Unicorn status in 2021. In August 2021, ZETWERK raised approximately $150 million in funding from D1 Capital Partners, which made the startup a unicorn with a valuation of $1.3 billion.