India’s Zetwerk recently announced a funding round of $120 million to scale its B2B marketplace for manufacturing parts.
This round of funding is a significant milestone for the company and could have a huge impact on its future success.
This article will discuss the company, the market it operates in, and the significance of this huge funding round.
India’s Zetwerk raises $120 million to scale its B2B marketplace for manufacturing parts
Zetwerk is an Indian B2B marketplace for industrial parts, based in Bengaluru and founded in 2018. It provides industrial manufacturing, procurement, and distribution services for interchangeable parts used in automotive, power & energy, construction & real estate, and engineering & machine tools. Its mission is to simplify sourcing of the components manufacturers need to manufacture their products with quality assurance.
The company works with over 1,000 large factories from around the world by connecting them with aspiring local manufacturers. Zetwerk also partners with over 300 manufacturer-suppliers to provide direct access to close networks of qualified suppliers that can meet specific industry needs.
In December 2020, Zetwerk announced a $120 million Series C funding led by Lightspeed Ventures and Tiger Global Management, plus existing investors including Accel and Kae Capital. This funding represents one of the largest venture investments ever in India’s B2B marketplace company. The funds will be used to scale up operations in India and expand into other markets across Asia Pacific and Europe. With this new capital injection, Zetwerk plans to introduce services such as integrated payment processing systems and enterprise resource planning software products to provide a fully integrated solution for its customers.
Previous funding rounds
Zetwerk, an Indian e-commerce platform for industrial parts and products, has successfully closed a series of funding rounds leading up to its latest funding round of $120 million in March 2021. Founded in 2018, the startup has experienced significant growth due to increased demand from the manufacturing sector. This has propelled the company to become India’s B2B market leader for manufacturing parts with a 50% market share.
Zetwerk’s Series A funding round was announced in October 2019 at an undisclosed amount, however news reports suggest it was between $10 – 13 million (USD). This capital injection allowed the company to expand its marketplace offerings by developing proprietary technology and enhancing its logistics capabilities. The Series B funding round was announced in August 2020 and they closed with $45 million (USD) from new investors such as Lightspeed India Partners and Sequoia Capital India. Again this capital injection supported their platform expansion efforts by allowing Zetwerk to move into parts ordering automation through AI-driven manufacturing process protocols.
Their third and most recent funding round was announced in March 2021 at $120 million (USD), led by SoftBank’s Vision Fund 2. Zetwerk plans on using this capital to further expand their operations regionally into Southeast Asia and South Korea within the next 48 months, as well as further improving their cloud-based supply chain infrastructure via investments into AI & ML technologies, dynamic pricing features that facilitate real-time quoting from multiple vendors, and mobile app development for easy processing of orders from both buyers and sellers along all stages of the supply chain. This investment is expected to continue driving growth for Zetwerk towards becoming a global enterprise for business-to-business services within manufacturing parts and products.
Details of the Funding Round
India’s Zetwerk recently announced that it has raised $120 million in its latest funding round, with investments from Tiger Global, Latitude, Kae Capital, and other investors. This marks a major milestone for the company, which operates a B2B marketplace to facilitate the sale and manufacture of parts.
Let’s take a closer look at the details of this funding round.
Investors involved
India’s B2B marketplace for manufacturing parts, Zetwerk, has announced a $120 million Series C funding round, led by existing investors Accel and Avaana Capital, with new investors Kae Capital and Prosus Ventures (formerly Naspers Ventures) joining in.
The funding brings the startup’s total capital raise to over $200 million since it was incorporated in 2018. The new capital will scale the company’s technology capabilities, geographical reach and industrial partnerships within India and other markets.
Zetwerk was founded to help businesses find quality manufacturers for sheet metal fabrication. It currently serves more than 5,000 customers who require anything from parts to precision tools or industrial equipment. The startup plans to use the new funds to further expand its product portfolio by adding services such as custom fabrication of components and designs. Concurrently, it is also working on plans to enter more markets globally through organic and inorganic growth strategies soon.
Zetwerk recently completed its Series B funding round at a valuation of over $800 million led by existing investor Accel India with participation from DST Global, Kalaari Capital and Delta Stakeholders in Oct 2020. With this latest Series C funding round, Zetwerk’s valuation has grown further within 10 months of its last raise with Accel and Avaana leading the round again along with additional investments from Kae Capital and Prosus Ventures which have now become long term partners in Zetwerk’s growth journey post this raise.
Amount raised
Indian manufacturing-centric B2B marketplace Zetwerk has raised $120 million in a Series D funding round led by the SoftBank Vision Fund 2. The round also had participation from existing investors, including KKR, Lightspeed Venture Partners, Leo Capital, and Sequoia India. With this raise, the total funds raised by Zetwerk stand at $225 million.
The pre-money valuation of the venture has crossed the figure of $1 billion, making it a member of the elite group of startups known as ‘unicorns’. This funding round enables Zetwerk to strengthen its foothold in its existing markets and scale operational capabilities to support other sectors where its B2B platform can be applied.
As a result of high demand for capital equipment during the current pandemic phase, Zetwerk is well placed to cater to market needs across industries such as defence manufacturing, medical devices, oil and gas production and construction & infrastructure.
Use of funds
India’s Zetwerk has recently raised $120 million in a funding round led by Tiger Global, Accel Partners, Sequoia Capital and Kae Capital, with participation from existing investors. This brings the total amount raised by the B2B manufacturing platform to over $200 million.
This new round comes as more investors are eager to capitalise on the business benefits of digital and cloud technologies to help traditional manufacturers leverage them and increase their production capacities quickly. Zetwerk has been at the forefront of this shift, offering multi-tenant manufacturing solutions for quick scalability at lower costs.
The funding will be used to further scale Zetwerk’s B2B marketplace and offer new services across its customer base in India and expand into overseas markets. The company will invest heavily in product engineering, hiring top talent and building a strong infrastructure to accommodate its growth ambitions. It also plans to strengthen its core technology platform with AI-driven automation tools to make procurement faster and easier for its customers. Additionally, the funds will go towards building up their team of industry experts who can provide customised support for startups looking to scale their businesses through this platform.
Impact of the Funding Round
India’s Zetwerk recently closed a $120 million Series-D funding round, making it one of the highest funded startups in India this year. This funding round will enable Zetwerk to expand its B2B marketplace for manufacturing parts and create more jobs over the long term.
Let’s look at the impact of this funding round and how it will shape the company’s future.
Expansion of services
India’s Zetwerk has recently raised $120 million in a Series C funding round, bringing their total funding to $175 million. This capital infusion will be used to expand the services offered by the platform and strengthen the B2B marketplace for manufacturing parts it has created. With this new funding, Zetwerk can increase its scale and expand its reach across India and other Asian markets.
The company offers an expansive range of services to businesses of all sizes within the manufacturing industry, allowing customers to have their exact product needs served even if they are geographically dispersed across the country. These services include raw material sourcing, installation and procurement of parts, on-demand production planning and more. By expanding these services, Zetwerk can help improve efficiency, reduce cost overruns and maximise revenue for B2B manufacturers across multiple sectors including automotive, electronics, energy & power and aerospace. Additionally, this extended service portfolio will offer invaluable insights into the emerging trends in technical manufacturing, which can be further leveraged for better decision making.
Increased competition
The injection of extra funds helps Zetwerk in more ways than one. It enables them to invest more in scale, marketing and product innovation, and brings more brand visibility. However, this additional funding comes with a challenge – increased competition from emerging players in the market.
The B2B manufacturing industry has seen a sudden surge in investment since the beginning of 2021. As the race to make B2B revolutionise gains momentum, big names such as Alibaba and Amazon have been working hard to capitalise on opportunities in India and elsewhere in Asia. This new competition can limit Zetwerk’s ability to leverage its exclusive partnerships and pricing strategies to attract buyers and sellers. As a result, it could become difficult for Zetwerk to sustain their current success without investing in further product development and improved customer service functions.
Whether other participants will impact the company’s revenue growth going forward remains uncertain. Still, it provides another lucrative opportunity for the company to establish its global presence by exploring other markets outside India and scaling even further internally.
Future outlook
India’s Zetwerk, an end-to-end online manufacturing platform for made-to-order parts, recently raised $120 million in funding. This positioning of the company will propel it into a new era of growth which is expected to further expand their customer base, focus on scaling their operations and building a unique value proposition.
The target customers for Zetwerk are small and medium sized businesses (SMBs) who typically struggle to obtain quality spare parts at the right price through traditional off-line methods. This has also enabled these businesses to save on storage costs and serve as just in time (JIT) inventory solutions. The primary benefit of this platform is that it enables customers to invest in exact quantities with reduced lead times at competitive prices because of the efficient matchmaking with its partner manufacturers.
The company will be able to leverage its fresh capital infusion for strategic investments that can enhance its product and create benchmarks in marketplaces and a scale backed by AI/ML technologies. In addition, the team can tap into increased national focus on industrial development through government schemes like ‘Make In India’. That initiative appears to have gained more traction as global supply chains are re-examining their multiple Indian sourcing bases.
The immediate prospects from this massive funding round is also expected to drive sales, cater larger customer base and generate supplementary revenue streams from strategic partnerships with global leaders such as Amazon Business, who benefit from ZWK’s cataloguing ecosystem that connects large corporate buyers directly with OEMs (Original Equipment Manufacturers).
With global players entering into the Indian manufacturing sector, the prospects of immense growth increases all the more. Hence, companies such as ZWK hold strong ground in the country’s nascent yet rapidly expanding industrial ecosystem which propels us positively towards achieving PM Modi’s vision of “Make in India” dream.
This recent funding round for Zetwerk marks a significant step in its growth trajectory. With the influx of capital, the company will continue strengthening its position in India’s manufacturing parts B2B market. Furthermore, the investment demonstrates confidence in the company’s capabilities and achievements.
In this article, we will cover the impact of this funding round on the company.
Summary of key points
India’s Zetwerk has successfully raised $120 million in a Series C funding round to expand its B2B marketplace for industrial parts. The company is part of a wave of Indian startups receiving funding and paving the way for India to become a dominant force in global technology and innovation.
The round was co-led by Tiger Global, some existing investors (Accel, Kae Capital, Matrix Partners) and new investors such as Maersk Growth, Alteria Capital and Steadview Capital. The funds will help Zetwerk grow its market networks, add immense capabilities into their digital platform and expand their presence in other regions like Southeast Asia, U.S., Europe, Middle East and Africa.
Zetwerk also plans to use the funds to invest in research and development initiatives and build on the team strength with aggressive hiring targets across engineering and product teams. This will be crucial for the platform’s expansion into new markets as it seeks to strengthen its global manufacturing technology offerings for customers.
Conclusion: With an eye towards the global market, Zetwerk’s new funding round reflects India’s keen interest in providing innovative products that can compete internationally. This demographic shift presents a unique opportunity for ambitious startups like Zetwerk to solidify their footing while gaining access to key resources that can help them grow exponentially, revolutionising manufacturing processes globally.
Implications of the funding round
India’s Zetwerk has raised $120 million in its latest funding round, making its total capital a remarkable $185 million to date. This influx of capital exemplifies the potential investors have seen in the company since its inception, confirming Zetwerk’s ambitions to become India’s leading B2B manufacturing marketplace.
The additional funds will help Zetwerk rapidly scale its operations, expand within India, and enter international markets. The funding could also open up opportunities for strategic partnerships and other collaborations. In addition, this new funding round will likely drive up market valuations and potentially bring in more investors or takeovers by larger companies.
On the company’s end, this means expanding the number of products listed on the platform, streamlining processes across various departments, automating some operations with machine learning and artificial intelligence technologies and improving overall efficiency.
At a broader level, it implies greater competition in India’s B2B manufacturing marketplace with more pressure on players such as MakeMyTrip or Yatra for faster turnaround times and improved customer service experiences. This development can only benefit customers with access to a wider variety of manufacturers and parts – all within a digital platform that makes browsing easier than ever before.
