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Bengaluru-Based Zetwerk Sets the Stage for a Mega IPO Bengaluru-based contract manufacturing giant Zetwerk is reportedly gearing up for a blockbuster IPO, aiming to raise up to $750
Bengaluru-based contract manufacturing giant Zetwerk is reportedly gearing up for a blockbuster IPO, aiming to raise up to $750 million. The company, which earned unicorn status in 2021, is expected to file its draft prospectus early next year using the confidential filing route.
Zetwerk’s planned IPO has already attracted attention from six major banks, signaling investor confidence and setting expectations high. Kotak Mahindra Capital, JM Financial Services, Avendus Capital, and the Indian units of HSBC, Morgan Stanley, and Goldman Sachs are all on board to manage the offering, according to reports.
This IPO could mark one of the most significant public offerings in India’s manufacturing and industrial technology sector, drawing eyes from domestic and international investors alike.
Zetwerk became a unicorn in 2021, achieving a valuation that placed it among India’s fastest-growing manufacturing tech firms. The company connects manufacturers with industrial buyers via a tech-driven platform, streamlining complex contract manufacturing processes.
The proposed $750 million IPO represents the next step in Zetwerk’s growth story. Analysts and investors are closely watching, as this IPO could serve as a benchmark for other manufacturing-focused startups looking to tap the public market.
For FY24, Zetwerk reported an operating revenue of roughly Rs 14,596 crore. However, it also posted a net loss of around Rs 919 crore. While losses are not unusual for high-growth startups in the tech-enabled manufacturing space, they do highlight the challenges the company faces in scaling operations while remaining efficient.
The IPO could provide the capital needed to accelerate growth, expand the platform, and invest in new technologies, all while signaling maturity to public market investors.
Zetwerk’s IPO is expected to include a combination of fresh shares and an offer for sale. The fresh issue portion is anticipated to dominate, providing the company with new capital to fund expansion and innovation initiatives.
While discussions about the exact structure and timing are ongoing, reports suggest that Zetwerk aims to strike a balance between raising growth capital and providing liquidity to early investors and stakeholders.
By filing confidentially, Zetwerk can keep sensitive information under wraps while preparing for a public launch. This approach allows the company to refine its valuation, deal structure, and investor presentation before entering the scrutiny of public markets.
Zetwerk’s platform connects buyers with manufacturers, streamlining processes that were historically fragmented and opaque. By digitizing quotes, order management, production tracking, and supply chain coordination, Zetwerk has simplified industrial manufacturing for both large enterprises and smaller players.
This model not only increases operational efficiency but also opens new growth avenues in sectors like automotive, aerospace, and industrial equipment.
Despite the losses, Zetwerk’s revenue growth reflects its ability to scale quickly. Its tech-enabled platform has positioned the company as a leader in India’s manufacturing technology landscape. With the IPO proceeds, Zetwerk could accelerate product development, expand into new geographies, and strengthen its market position globally.
Zetwerk’s public listing could pave the way for other manufacturing-focused startups to explore IPOs. While India’s startup ecosystem has largely been dominated by fintech, edtech, and consumer tech IPOs, Zetwerk represents a shift toward industrial technology going public.
With backing from heavyweight banks such as Morgan Stanley and Goldman Sachs, Zetwerk’s IPO will attract both domestic and international institutional investors. Analysts expect strong interest due to the company’s growth potential, technological edge, and the increasing importance of India’s manufacturing sector in the global supply chain.
The net loss of Rs 919 crore could raise questions among cautious investors. Scaling operations across diverse manufacturing segments is capital-intensive, and profitability will be closely scrutinized once the company enters public markets.
Like all IPOs, Zetwerk’s public debut will be subject to market conditions. Economic factors, investor sentiment, and broader market trends could impact subscription rates and pricing.
Despite these considerations, Zetwerk’s unicorn status, strong growth trajectory, and technology-driven model give it a compelling story for potential investors.
Zetwerk’s IPO is more than just a fundraising exercise. It represents the maturation of India’s industrial technology startups and signals the growing role of tech in transforming traditional sectors.
As Zetwerk prepares for its public debut, the spotlight will be on how effectively it leverages the IPO proceeds to consolidate its leadership and continue its journey toward transforming manufacturing in India.
