India’s Zetwerk, an online manufacturing network service, has recently secured $115 million in new funding with the participation of new and existing investors. This development has made Zetwerk the most valuable Indian startup, with its valuation reaching a landmark $1.33 billion.
Founded in 2018 by three IIT Kanpur alumni, Amrit Acharya (CEO), Srinath Ramakkrushnan (COO) and Krishna Shinoy (CTO), the startup started out with the aim of providing an intelligent platform to connect manufacturers and buyers worldwide while promoting local manufacturing. The company has since grown in immense leaps, becoming a hot-pick for investors and allowing itself to raise funds multiple times this year already.
Services offered by Zetwerk include end-to-end manufacturing solutions for tailoring specific production requirements across Asia, making it a one-stop shop for any engineering needs. It offers seamless trading with quality assurance together with financial back up from lenders who are partners with Zetwerk.
The success story of this startup shows the potential of Indian businesses to compete in the international market which continues to expand further on its digital platform approach towards engineering related tasks and services.
Zetwerk’s Journey
Zetwerk, a B2B manufacturing platform, has become the most valuable Indian startup after being valued at $1.33 billion in new funding.
Founded in 2018 by IIT Kanpur graduates Srinath Ramakkrushnan and Amit Maheshwari, Zetwerk has come a long way since then.
We will investigate the journey Zetwerk has taken to become one of India’s most valuable startups.
Early years
Founded in 2018 by co-founders Karthik S.R., Amrita Halan, and Shruti M.D., Zetwerk began with a mission to make manufacturing simple, fast and hassle-free. The company initially focused on providing digital procurement solutions to businesses in India.
In the early days of its startup journey, Zetwerk worked with smaller enterprise clients— mostly resellers or component manufacturers — in the manufacturing sector across India. The platform provided real-time updates on electronic parts stock status and provided an online marketplace for component manufacturers to fulfil orders at scale.
In June 2019, Zetwerk raised its first round of funding from venture capitalist firm Lightspeed Venture Partners. This was followed by another round of funding shortly after that saw the company attract investors such as Accel India and Kae Capital as well as existing investor Lightspeed Venture Partners. With this funding came some big shifts for the startup.
Zetwerk’s platform picked up speed when large global technology companies began using it for their procurement needs and increasingly looking towards India’s manufacturing sector when scaling up production of their products– which ultimately led to what would become one of India’s most successful startups in 2020.
Expansion
India’s Zetwerk, a digital sourcing and manufacturing platform, has announced that it has raised a fresh round of funding at a valuation of $1.33 billion. This makes Zetwerk India’s most valuable startup to date.
Zetwerk was founded in 2018 by IIT graduates Srinath Ramakkrushnan and Amrit Acharya. The company connects businesses with manufacturers for services such as production planning, inventory management, supplier management and tracking activities throughout the entire manufacturing process.
In 2019, Zetwork achieved profitability and reportedly grew revenue eight-fold from its launch year. Since then, the company has continued to attract startups looking for quality sourcing options not available elsewhere. In 2020, it had an enviable growth rate of 300%.
The most recent round of funding was led by existing investors Accel India and KAE Capital and new investor Prosus Ventures (previously Naspers Ventures). According to its founders, Zetwerk will use the $115 million raised to pursue aggressive innovation in its product offering while expanding into adjacent geographies such as Asia Pacific markets.
The success of Zetwork is indicative of the growing startup ecosystem in India that continues to stretch boundaries when it comes to market models and innovation methods that are beginning to take shape in other countries around the world. With this new funding round proving that venture capital money is firmly behind this new digital powerhouse – we may just be witnessing a classic example of “made in India” success!
India’s Zetwerk valued at $1.33 billion in new funding
Zetwerk, India’s largest business-to-business marketplace for customized manufacturing services, has closed a Series C funding round of $150 million. This new financing values the company at $1.33 billion, which makes Zetwerk the most valuable Indian startup.
Headquartered in Bengaluru, the company was founded in 2019 by Amrit Acharya, Srinath Ramakkrushnan and Rahul Sharma with a mission to provide the manufacturing ecosystem to unlock a predictable supply chain for businesses through technology-driven commerce solutions. With this latest investment, Zetwerk aims to scale its technology platform and increase its operations across multiple geographies. The new funds will also help accelerate the company’s plans for global expansion into Europe and North America in 2021.
Zetwerk provides an end-to-end platform for buyers of custom components and parts in all major industries such as aerospace & defense, capital goods and industrial equipment. By using proprietary machine learning algorithms that match demand from suppliers worldwide with capacity from manufacturers across India and launching innovative products like Catalog Procurement Platform (CPP) and Spare Parts Management Solution (SPM), the online marketplace has helped customers save up to 40% on costs while reducing lead times by up to 60%. To date, Zetwerk has served over 700 customers including marquee names like Nokia Networks, Decathlon Group and Siemens AG among several others.
Impact of Series C Funding
Series C funding represents a key milestone for Indian startup, Zetwerk, as it is now valued at $1.33 billion. This new round of funding signifies a significant step forward for the company, as the influx of capital has greatly bolstered the organization’s growth potential.
Let’s take a closer look at how this Series C funding has impacted Zetwerk and its operations.
Valuation
The recent Series C funding round for Zetwerk, an Indian manufacturing and services platform, has valued the company at $1.33 billion and made it the most valuable tech startup in India. This achievement continues to boost India’s reputation as a hub for market innovation that attracts investment from all around the world.
India is experiencing a boom in venture capital funding, surpassing the US in terms of global share of venture capital investment for the first time in 2020. The $1.33 billion valuation from Zetwerk’s Series C funding round reflects this trend, setting a new benchmark for tech startups in India. Investors included Softbank Vision Fund 2 and Falcon Edge Capital along with ongoing investors Insight Partner, Kae Capital and Accel Partners to name a few. With this short-term success comes further recognition of the potential that exists within the Indian start-up ecosystem and its immense untapped global opportunities.
The successful round also opens up further potential sources of capital due to increased exposure to financial networks around the world as well as marking an important step towards sustainability for Zetwerk which can integrate long-term corporate strategy objectives into its roadmap for future growth. With such strong financial backing, prospects look good for an expansion into other sectors beyond manufacturing and services where technology platforms can serve as valuable engines of economic growth throughout India and more widely across Asia’s thriving developing markets.
Growth prospects
The growth prospects of Zetwerk, India’s most valuable startup, have been significantly boosted with its most recent Series C funding round. Valued at $1.33 billion in the new funding, this marks a threefold increase in valuation since the start of Zetwerk’s journey in 2018.
Ever since it was founded in 2018, Zetwerk has been able to demonstrate impressive growth and financial discipline. The company has established itself as a leading industry player by leveraging the nascent digital technology sector. This innovative approach has allowed the company to carve out a special proposition for itself that is distinctly different from its competitors.
The massive influx of funds will enable the company to accelerate its growth trajectory and expand its operations across multiple countries. The funds also present new opportunities for investments into areas such as product research and developmentBesides acquisitions, strategic investments may also occur that could further fuel the company’s advancement.
Additionally, Zetwerk can utilize these funds to drive innovation via development of products and services that cater to their customers’ needs more effectively than existing market options can currently provide them with. This should help them create even higher customer loyalty through enhanced customer experience – along with growing their customer base further and building stronger relationships with existing customers over time. Furthermore, increased investments into marketing activities will bolster their visibility amongst prospective customers worldwide and help further increase business yields as well!
Benefits of Series C Funding
India-based manufacturing startup Zetwerk has become the most valuable Indian startup after raising a record $160 million in Series C funding. This deal valued the startup at $1.33 billion and is yet another example of the allure of Series C funding.
This kind of funding offers businesses certain benefits that can help them achieve their short and long term goals. Let’s explore what some of these benefits are.
Expansion into new markets
The funding from series C allows a company to invest in the expansion of its core services, explore different markets and fund the development of new products. With series C funding, Zetwerk has been able to expand its services into international markets, including South East Asia and Europe. By entering new markets, they are providing increased value to their customers while also allowing them to tap into virgin territories with new potential customer bases.
Series C funds have allowed Zetwerk to build more robust supply chains and develop improved technologies for manufacturing. This has enabled better quality control over the entire production process and has created an efficient system for managing customer orders. Additionally, it gives them access to more cost-effective resources for their business operations.
Finally, this new round of funding can also be used by Zetwerk to continue investing in research and development initiatives that improve upon its existing products or create completely new ones that have a high potential for success. In short, it allows them greater opportunities for growth and innovation that can result in greater market share and profits long-term.
Hiring more talent
Series C funding provides startups with a significant boost in capital which can be used to expand operations. Increased capital gives startups the ability to hire more talent and introduce new features or services which may be necessary for their long-term success.
In India, Zetwerk received a Series C investment funding from Index Ventures, Sequoia Capital India and Accel. This round of funding provided the startup with additional capital which it has directed towards the hiring of over 200 engineers, designers, marketers and sales specialists across the country.
Additionally, this round of funding has enabled Zetwerk to introduce its own ERP (Enterprise Resource Planning), helping it to better integrate industrial demand across various regions including Africa, Europe and South America into India’s emerging manufacturing sector.
Development of new products and services
The funding secured by the Indian Company Zetwerk provides a great opportunity for new product and service development. This cash infusion provides the business with the necessary resources and flexibility to accelerate innovation and research. Having this financial cushion gives the organization increased margin to produce products quickly, capture different target markets, or launch services that previously weren’t affordable due to sunk costs.
These funds also further fund marketing initiatives in order to help increase brand recognition and customer acquisitions, building off previous investments of both time and money. Finally, series C Funding enables Zetwerk to deploy more competitive pricing strategies allowing them to stay consistent with the current market standards or underbid their competition.
With these advantages, having a strategic plan can now be implemented through expansion that would best benefit the entire business and its operations.