In a significant move, signalling continued investor confidence in India’s burgeoning B2B e-commerce sector, Zetwerk, a leading player in the industry, has successfully raised $20 million in its ongoing Series F funding round. The investment comes from Wheelhouse Venture Capital, marking the first foray of the venture firm into Zetwerk’s ecosystem.
According to regulatory filings obtained from the Registrar of Companies, Zetwerk’s board has approved the issuance of 40,81,593 Series F2 CPPS shares at an issue price of Rs 407.39 each, resulting in the infusion of Rs 166.28 crore ($20 million) into the company.
Notably, this strategic investment comes from Rakesh Gangwal, the co-founder of IndiGo, who has chosen to channel funds through Wheelhouse Venture Capital. Following this transaction, Wheelhouse Venture now holds just under a 1% stake in Zetwerk, with existing stakeholders such as Greenoaks retaining the most significant share at 21.63%.
Zetwerk’s co-founders, Srinath Ramakkrushnan and Amrit Acharya, hold a cumulative stake of 15.56% in the company, underscoring their commitment to its growth trajectory.
Zetwerk, which specializes in partnering with offline suppliers engaged in various manufacturing processes, including fabrication, machining, casting, forging, and galvanizing, operates in over 15 countries. The company serves over 100 customers across 25 industries, spanning regions such as India, North America, and the Middle East.
Despite facing stiff competition in the B2B e-commerce space from players like Infra.Market, OfBusiness, and Moglix, Zetwerk has demonstrated robust growth. In the last fiscal year, the company’s Gross Merchandise Value (GMV) soared 2.3 times to Rs 11,448 crore. However, the company also saw its losses increase by 81% to Rs 109 crore during the same period (FY23).
In comparison, OfBusiness emerged as the sector leader with a revenue of Rs 15,342 crore and a profit of Rs 463 crore. Infra.Market reported a 90% increase in gross revenue, reaching Rs 11,846 crore, with a profit of Rs 155 crore. Meanwhile, Moglix recorded revenue of Rs 4,595 crore but reported a loss of Rs 193 crore in the last fiscal year.
The investment from Wheelhouse Ventures underscores Zetwerk’s position as a formidable player in the B2B e-commerce landscape and signals the potential for further expansion and innovation within the industry. With the backing of experienced investors like Gangwal and the continued support of existing stakeholders, Zetwerk is well-positioned to capitalize on emerging opportunities and drive continued growth in the coming years.
