INR 100 Cr Debt funding raised by contract manufacturing platform Zetwerk
According to reports, Zetwerk, a B2B contract manufacturing platform, has secured INR 100 Cr in debt capital from companies like Edelweiss Group, one additional fund, and other high-net-worth people (HNIs).
According to a Mint story quoting sources, non-convertible debentures (NCDs) were used to finance the debt, with the Edelweiss Credit Plus Fund contributing about INR 83 Cr.
The article also stated that many HNIs and one additional fund took part in the fundraising round, which was part of a syndicated round. Although they contributed the remaining INR 17 Cr in the investment round, these participants were anonymous.
Prior to a new equity round that the unicorn has planned over the next months, the B2B marketplace decided to seek debt. The deal size was not immediately known, despite the fact that the aforementioned sources informed Mint that Edelweiss will take part in the equity round with Crossover Opportunities Fund and other investors.
Zetwerk intends to expand its capital market access, make new acquisitions, and expand the company using the incoming cash.
Zetwerk, which was established in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary, has already amassed $650 million in the capital. After financing $150 MM in a round-headed by New York-based D1 Capital Partners, Zetwerk joined the unicorn club in September of last year. Green Oaks Capital spearheaded a $210 Mn fundraising effort in December of last year.
Zetwerk is a platform for manufacturing services that links providers of bespoke goods, parts for industrial machines, and other equipment with manufacturers.
InfraMarket.com, Udaan, Moglix, and OfBusiness are some of its rivals.
To enhance its many verticals, Zetwerk spent INR 100 Cr on the acquisition of three companies in July of last year. It bought SharpTank for the oil and gas industry, Pinaka Aerospace Solutions for infrastructure, aerospace, and defence components, as well as the fabrication division of Wheels India.
Later in November, at a valuation of $39 million, the B2B unicorn acquired Unimacts, a US-based provider of manufacturing services.
The B2B startup reported a loss of INR 59.7 Cr in FY22, an increase of 45% from INR 41.1 Cr in FY21. From INR 835.4 Cr in FY21 to INR 4,960.5 Cr in FY22, Zetwerk’s operational revenue increased 5.9X.
Total costs for the B2B startup increased by 465% to INR 5,145.4 Cr in FY22 from INR 909 Cr in FY21.
