Bengaluru,
19 December, 2024: ZETWERK
Manufacturing Businesses Pvt Ltd has successfully raised close to $90 million
in 2024, valuing the company at $3.1 billion.
The funding round was led by
renowned investors Rakesh Gangwal and Khosla Ventures. Additionally, UK-based
Baillie Gifford joined as a new investor too, while existing backers Greenoaks
and Avenir Growth also participated. This significant investment will fuel
ZETWERK’s expansion in its core business areas: Renewables, Consumer
Electronics, and Aerospace.
“Every company that needs
manufacturing capabilities is focused on making their supply chains more
resilient and less prone to geopolitical risk,” said Mr Jai Sajnani of Khosla Ventures.
“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,”Mr Sajnani added.
The company also achieved
Gross Merchandise Value of ₹17,564 crore (~$2.10
billion) for the year ended March 31, 2024, aided by solid company
fundamentals and a well-executed business diversification strategy.
“The manufacturing sector has
long grappled with challenges such as 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,” said Amrit Acharya, Co-founder and CEO, ZETWERK Manufacturing.
Over the last five years,
ZETWERK has developed a ‘Build-to-Print’ engine which can ingest designs of any
complexity and across a wide range of industries. This engine is core to our business model. Underpinning
this engine is ZETWERK OS, a manufacturing operating system that manages the
entire execution cycle, from supplier selection, to real-time tracking,
seamless communication and quality assurance.
“This software is crucial for
our customers' success,” said Mr Acharya.
“Manufacturing is inherently complex and fragmented. A typical customer order
involves an average of six ZETWERK suppliers, over 100 designs, and a two-month
fulfillment timeline. Moreover, ZETWERK concurrently executes 1,000 customer
contracts. ZETWERK OS enables us to manage this intricate process with
unparalleled transparency. This transparency mitigates cost overruns and
ensures significantly higher on-time delivery rates compared to traditional
factory-based manufacturing.”
ZETWERK has emerged as one of
the go to manufacturing partners to more than 2,000 customers in India, North America, and Europe
as they increasingly prefer ZETWERK’s capabilities to drive trust, reliability
and transparency in their supply chain requirements. As a result, 80-85% of ZETWERK’s GMV has come
on the back of increased spending from repeat customers who use ZETWERK’s
technology and supply chain to drive faster lead times, improved quality and
better visibility into their sourcing requirements.
In 2020-21, the company
decided to diversify its services beyond India and venture into international
markets such as North America. It also added Consumer business to its portfolio
in addition to the Industrials segment. These strategic decisions have provided
long-term tailwinds for the Company's global growth.
GMV from the Industrials
segment, which includes Renewables and Precision Manufacturing, contributed 92%
to the total GMV. The International GMV accounted for 21% of the business.
The Company secured orders
worth ₹12,839 crore (~$1.51 billion) at the group
level until 30 September 2024.
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