[Funding alert] Lightspeed, Greenoaks lead Rs 225 Cr Series B investment in Zetwerk
In addition to the equity funding, the Bengaluru-based company has also cumulatively raised an additional Rs 100 crore of debt from a consortium of banks, NBFCs, and venture debt funds.
Zetwerk, an 18-month old B2B software platform for custom manufacturing, has raised Rs 225 crore ($32 million) Series B round led by Lightspeed and Greenoaks Capital. Existing investors Sequoia India, Accel, and Kae Capital also participated in the round.
Neil Shah of Greenoaks Capital said,
"We believe Zetwerk is modernising the massive industrial manufacturing market with their next-generation marketplace as OEMs get access to reliable and transparent industrial suppliers and manufacturers conduct sophisticated project management and grow their businesses by leveraging Zetwerk's suite of software. We are proud to partner with the Zetwerk team and help them bring what we believe is a transformational service globally.”
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In addition to the equity raise, the Bengaluru-based company has also cumulatively raised an additional Rs 100 crore of debt from a consortium of banks, NBFCs and venture debt funds. The round also saw participation from Vaibhav Gupta of Udaan and Maninder Gulati of Oyo. Previously, the company had raised Rs 64 crore in Series A round from Sequoia India, Accel, and Kae in March 2019.
"We are privileged to have the opportunity to work with Zetwerk. It is unusual to come across a market that is as large as $40-60 billion in India and global trade-tailwinds that create opportunity to serve international demand. The operating and strategic prowess of the founding team was evident in the hockey-stick growth trajectory of the company,” said Vaibhav Agrawal, Partner, Lightspeed.
Founded by IIT alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk is a manufacturing platform connecting Original Equipment Manufacturers (OEMs) and Engineering Procurement Construction (EPC) customers across India, North America, and South-east Asia with manufacturing SMEs.
Zetwerk said it does this across categories like fabrication, machining, casting, forging, etc. It helps customers with procurement of custom products (which are not available off-the-shelf), real-time tracking, and project management all the way till delivery. For SME suppliers, Zetwerk is able to enhance manufacturing capacity utilisation, helping increase revenues and profitability, the company added.
“For India to become a $5 trillion economy, manufacturing has to be at the forefront. So, at Zetwerk, its very much day zero in our mission to transform India into a manufacturing powerhouse,” said Amrit Acharya, the CEO of Zetwerk.
According to Zetwerk, manufacturing contributes to 14 percent of India’s GDP. Currently, India has world-class capabilities on the supply side, but lacks a supporting ecosystem to execute projects better. Zetwerk aims to bridge this gap through a technology-led, full-stack approach that can support Indian manufacturers with a world-class manufacturing ecosystem, from improving traceability to more efficient pricing and matchmaking, from order receipt till delivery, the company said in a statement.
Today, Zetwerk works with over 100 enterprises and over 1,500 SMEs, delivers 15,000 plus manufactured parts per month and has a presence across India, North America, South-East Asia, spanning multiple industries - oil and gas, steel, cement, aerospace, infrastructure, etc.
(Edited by Megha Reddy)