Contract manufacturing unicorn Zetwerk records 82% spike in losses in FY23
Contract manufacturing platform Zetwerk has posted an 82% increase in losses for FY23 even as revenue from operations rose by 130% year-on-year on a consolidated basis.
Contract manufacturing company reported an 82% increase in losses for FY23 at Rs 108.7 crore from Rs 59.76 crore in the previous fiscal year on a consolidated basis. The Bengaluru-based company’s revenue from operations grew by nearly 130% to Rs 11,448.6 crore during the year, with the overall income growing by a similar metric to Rs 11,595.6 crore for the year.
Zetwerk’s expenses rose by 130% as well to Rs 11,712.62 crore on the back of rising employee expenses, finance costs, and other expenses.
The numbers reflect the consolidated figure for 19 entities, including two jointly controlled entities and 17 subsidiaries.
Apart from its India entity, Zetwerk also has regional operations across Singapore, the US, and the Middle East. The company has also made four acquisitions in 2022.
It has reportedly raised $120 million in a Series F round of funding led by Avenir Growth Capital and returning investors Lightspeed, Green Oaks Capital, and Steadview Capital.
The company was last valued at $2.7 billion in September 2022, according to data and research platform Tracxn, and raised the latest round at a flat valuation. Overall, it has raised $764 million to date.
Zetwerk, founded in 2018 by Amrit Acharya, Srinath Ramakkrsuhnan, Vishal Chaudhary and Rahul Sharma, offers a managed marketplace to industrial and consumer enterprises for contract manufacturing. It operates across diverse industries including oil and gas, renewables, aerospace, infrastructure, apparel, electronics and retail, as well as solar and renewable energy. According to recent reports, the company is also looking to invest Rs 1,000 crore to deploy in consumer electronics space including electric vehicles and IT hardware.
Edited by Kanishk Singh