Zetwerk, a business-to-business (B2B) manufacturing platform on Wednesday said that it has raised $120 million (₹880 crore) in a Series D funding round led by U.S.-based Greenoaks Capital and Lightspeed Venture Partners. Sequoia Capital India and Kae Capital also participated in the latest round.
The Bengaluru-based startup, which was founded in 2018 by IIT-alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, provides end-to-end manufacturing supply chain solutions. The company connects original equipment manufacturers (OEMs) worldwide with small and medium-sized businesses and large enterprises for customised components and assemblies.
The startup will utilise the fund to strengthen its technological capabilities and expansion into new categories and geographies. Last year in July, the company raised $21 million in a series C funding round. So far, the company has raised a total equity capital of $193 million.
Globally, the manufacturing sector is a large GDP contributor (14% for India), but is also a sector that has lagged behind in digital transformation. The Zetwerk marketplace is looking to modernise the industry using proprietary technology and project management techniques that enables growth and higher utilisation for small manufacturers and efficiency for global customers, the company said in a statement.
“The global manufacturing industry has had to swiftly adjust to the new normal, and digital solutions have become essential…2021 will see further pace of growth as companies seek to diversify their procurement to minimise disruptions,” Amrit Acharya, co-founder and CEO noted in a statement.
Finance Minister Nirmala Sitharaman in her Budget speech earlier this week had announced a slew of proposals to boost demand for manufacturing—one of the most critical sectors of the economy—proposals which would benefit companies such as Zetwerk. In an effort to boost demand and have a strong impact on growth, Sitharaman had proposed a sharp increase in government capital expenditure to ₹5.54 lakh, crore which is 34.5% more than the Budget estimates of 2020–21.
Today, Zetwerk’s global network includes more than 250 customers and over 2,000 suppliers, spread across 15 countries in North America, Asia-Pacific, and the Middle East. Its clients across sectors include Bharat Heavy Electricals Ltd (BHEL), Tata Steel, Tata Power, Thermax, Delhi Metro Rail Corporation Ltd. and others. Zetwerk operates across 25 industries, including process plants, oil and gas, renewables, steel, aerospace, automotive, consumer electronics, medical devices, and apparel.
Neil Shah, partner, Greenoaks Capital, points out that Zetwerk's operating system for manufacturing has digitised multiple supply chains end-to-end ensuring on-time delivery. “This has led to rapid growth in India and internationally, with the potential to quickly become one of the most important manufacturing platforms globally,” he says.