Wheelhouse Ventures led $20 M raised by Zetwerk in ongoing Series F round
Unicorn business-to-business e-commerce Wheelhouse Venture Capital has contributed Rs 166 crore, or $20 million, to Zetwerk’s current Series F funding round. This is Wheelhouse Venture’s first investment in the Bengaluru-based company.
In order to raise Rs 166.28 crore, or $20 million, the Zetwerk board approved a special resolution to allot 40,81,593 Series F2 CPPS at an issue price of Rs 407.39 each, according to the company’s regulatory filing obtained from the Registrar of Companies.
Rakesh Gangwal invested this strategic money in the company through Wheelhouse Venture Capital, Zetwerk said, citing media reports. To put it simply, Gangwal is a co-founder of the airline IndiGo.
According to the media, the company’s valuation in the latest round is $2.8 billion, which is marginally more than the $2.7 billion stated in its previous $120 million round.
Wheelhouse received slightly less than 1% of Zetwerk after the new proceeds were received, while Greenoaks continued to hold the largest stake (21.63%), followed by Peak XV partners and Lightspped. Together, co-founders Srinath Ramakkrushnan and Amrit Acharya own 15.56% of the business.
Zetwerk collaborates with offline vendors that manufacture, machine, cast, forge, and galvanize machine parts. It says it serves more than 100 clients in more than 25 industries in India, North America, MEA, and other regions, and it is operational in more than 15 countries.
In the most recent fiscal year (FY23), Zetwerk’s losses increased by 81% to Rs 109 crore, despite a 2.3X increase in GMV (gross revenue) to Rs 11,448 crore.
Zetwerk faces competition in B2B e-commerce from Infra.Market, OfBusiness, and Moglix. OfBusiness emerged as the biggest participant in this market with a revenue of Rs 15,342 crore and a profit of Rs 463 crore, while Infra.Market saw a 90% increase in gross revenue to Rs 11,846 crore and a profit of Rs 155 crore.
