Exclusive: Zetwerk to raise $67 Mn at $3 Bn valuation

Business-to-business (B2B) e-commerce unicorn Zetwerk is raising Rs 565 crore (approximately $67 million) in funding, led by Khosla Ventures with the participation of The Schiehallion Fund. This marks an additional investment in the Bengaluru-based company's ongoing Series F round.

The board at Zetwerk has passed a special resolution to issue 1,30,68,091 Series F3 compulsory convertible preferred shares at an issue price of Rs 432.7 each to raise Rs 565 crore, its regulatory filing sourced from the Registrar of Companies shows.

Khosla Ventures will lead the round with Rs 253 crore, while The Schiehallion Fund will contribute Rs 169 crore. Acron Heavy Industries, AEX4 LLC, and The Chinkerpoo Family Trust will collectively contribute Rs 143 crore during the investment.

The company will use these proceeds to meet fund requirements for its growth plans and general corporate purposes, including but not limited to capital expenditure, the filing added.

The company has raised approximately $740 million to date, including a $120 million round led by Avenir Growth Capital. Entrackr exclusively reported this development in October 2023. It also raised $20 million in March this year.

As per startup data intelligence platform TheKredible, the company's valuation is around Rs 25,884 crore (approximately $3 billion) post-allotment.

Founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, three-year-old Zetwerk 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.

Operational in over 15 countries, it claims to serve over 100 customers across more than 25 industries in India, North America, Middle East, and SEA region.

The company has yet to file its annual results for FY24. However, it showcased significant growth in FY23, with its scale expanding 2.3x to Rs 11,448 crore, while losses increased by 81% to Rs 109 crore during the same period.

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