Zetwerk Manufacturing Businesses Pvt. Ltd, which operates an eponymous manufacturing services marketplace, has raised $32 million (approximately Rs 226.78 crore at current exchange rates) in its Series B funding round.
Venture capital firms Lightspeed Venture Partners and Greenoaks Capital led the investment in the Bengaluru-based Zetwerk, The Economic Times reported. Existing investors that contributed to the round include Sequoia India, Accel and Kae Capital.
Udaan co-founder Vaibhav Gupta and Oyo’s chief strategy officer Maninder Gulati also invested in the company in their personal capacities, the report added. Besides that, Zetwerk has also raised Rs 100 crore (around $14.11 million) from a consortium of banks and non-banking financial companies.
VCCircle has reached out to Zetwerk on the details of the investment and will update this report accordingly.
Amrit Acharya, chief executive officer at Zetwerk, said the company requires the funds to move beyond the discovery of services and acting as a marketplace by venturing into segments such as financing, logistics, and helping suppliers in purchasing materials.
Separately, Greenoaks Capital’s Neil Shah said the firm was confident in its investment because of its marketplace model and software suite helping original equipment manufacturers to access reliable and transparent industrial suppliers.
Zetwerk was founded in 2018 by Amrit Acharya and Srinath Ramakkrushnan. The company says it connects mid-to-large original equipment manufacturers from India and Southeast Asia who need custom products and machine parts with those companies that can meet this demand.
On the supply side, Zetwerk works with manufacturing small and medium-sized enterprises across multiple categories such as fabrication, machining, casting, forging, etc.
In March this year, it raised $9 million (around Rs 62 crore) as part of its Series A round from venture capital firms Sequoia India, Accel and Kae Capital. Prior to this, the company raised $1.2 million in a seed round in August 2018. According to data available with VCCEdge, the financial and data research platform of News Corp VCCircle, the funding was secured from Kae Capital and Sequoia India.
Deals in the B2B segment
There has been considerable investor interest in the B2B e-commerce segment, with startups catering to various domains as they seek to offer streamlined, efficient and organised procurement and supply chain services to businesses of all sizes.
In September, Udaan raised around $300 million (around Rs 2,166 crore) in its Series D funding round from investors including Altimeter Capital and Footpath Ventures. The funding came a year after the startup raised $225 million (around Rs 1,593 crore) in its Series C round from DST and Lightspeed.
Earlier this month, Infra.Market, a business-to-business marketplace for real estate and construction materials, raised $20 million (around Rs 143.26 crore) in its Series A funding round led by US-based investment firm Tiger Global.
