Exclusive: IPO-bound Zetwerk adds fresh ESOPs worth $64 Mn

Business-to-business (B2B) e-commerce unicorn Zetwerk has added a new employee stock option worth Rs 541 crore (approximately $64 million) under its ESOP Plan 2018. This will be the maiden ESOP expansion for the Bengaluru-based company in the ongoing calendar year.

The board has approved the amendment of  Zetwerk’s Employee Stock Option Plan 2018 with fresh 1,25,03,900 stock options for the company, its regulatory filing accessed from the Registrar of Companies shows.

Every ESOP option will be converted into equity shares, and according to Fintrackr’s estimates, the newly added ESOP options are worth around Rs 541 crore (approximately $64 million).

The estimates indicate that Zetwerk's total ESOP plan is now valued at approximately Rs 1,145 crore or 136 million, encompassing 2,64,64,418 employee stock options. This marks a 90% expansion in the company's ESOP pool.

The ESOP expansion was followed by its $90 million fundraising led by Khosla Ventures with the participation of The Schiehallion Fund at a $3.1 billion valuation. Entrackr exclusively reported the development earlier this month.

Founded by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk is a three-year-old Company that connects buyers and suppliers for manufacturing jobs. The firm partners with offline suppliers engaged in the fabrication, machining, casting, forging, and galvanizing of machine parts.

According to the company press release, Zetwerk’s gross revenue grew 53% to Rs 17,564 crore in FY24 from Rs 11,448 crore in FY23. However, the company did not disclose the bottom line for the last fiscal year (FY24).

In the B2B e-commerce space, Zetwerk competes with Infra.Market, OfBusiness and Moglix. According to media reports, Zetwerk is also preparing for an initial public offering to raise $1 billion and has begun discussions with investment bankers.