When you want to buy a refrigerator or television, you can visit a nearby electronics store or an e-commerce website like Amazon. But when you are looking for parts of cranes, doors or chassis of different machines, where do you go?
For many businesses globally, the answer to that question continues to grow. Zetwerk, Is a Bangalore based startup.
Three-year-old startup runs A. Trade to business market for manufacturing goods It connects OEMs (original equipment manufacturers) and EPCs (engineering procurement manufacturing) with the creation of small businesses and enterprises.
Today all its products are custom-made. “No one has a stock of such inventions. You get orders, you build the manufacturers and workshops that make them, ”explained Amrit Acharya, co-founder and CEO of Zetwerk, in an interview with TechCrunch.
Its customers – more than 250 of them, up from 100 a year ago – work in two dozen industries (including process plants, oil and gas, steel, aerospace, medical devices, apparel and luxury goods), and Approach Zetwerk Digital With design they want to translate into physical products.
Customers are not the only ones to see value in Zetwerk. On Wednesday, the Indian startup said it raised $ 120 million in a Series D financing round led by current investors Greenox Capital and Lightspeed Venture Partners. Existing investors Sequoia Capital and Kae Capital also participated in the Series D round.
The new round, which raises Zetwerk’s date to $ 193 million, gives the firm after putting in money of anywhere between $ 600 million to $ 700 million, a person familiar with the matter told TechCrunch. (A quick note: Zetwerk announced $ 21 million Series C round last year, But raised $ 31 million in that round.
Zetwerk was co-founded by Acharya, Srinath Ramakrishnan, Rahul Sharma and Vishal Chaudhary. Long before Acharya and Ramakrishnan joined the army to deal with this place, they were considering the idea.
Both studied at IIT Madras, went to the same exchange program in Singapore, and were colleagues at Kolkata-headquartered ITC. While working there, he realized that a part of the product manager’s job at the firm was working with gazillions of suppliers and the manufacturing goods they offer.
The process was archaic: there was no database, and people could not track shipments.
The initial version of Zetwerk, which was a database of suppliers, was a direct response to this. But after listening to customer requests, the startup saw a huge opportunity and transformed itself into a full-fledged marketplace with integration with third-party vendors. Once a firm has placed an order, Zetwerk allows them to monitor the progress of manufacturing and then shipping. There is also quality check in place.
Zetwerk operates in such a unique place today – Sailesh Lakhani, managing director of Sequoia India, says the startup has defined a new category of markets – and is largely based on a firm in India or any other firm in South Asia Not competing with. (Startup competes with domain project consultants in the offline world.)
The opportunity in India is huge. According to industry reports, manufacturing today accounts for 14% of India’s GDP. Vaibhav Agarwal, a partner at Lightspeed, estimates that the market in India ranges from $ 40 billion to $ 60 billion and global trade-tailwinds that create an opportunity to meet international demand.
As more and more companies have expanded or changed their manufacturing in India – a global hub for manufacturing, due to import duties by India and geopolitical tensions with China – this opportunity has only grown in recent years.
Acharya said, “There is a lot of depth in manufacturing in India, but it has not been exploited very much.”
Zetwerk – which grew 3X last year and reported revenue of $ 43.9 million in the fiscal year ending in March, a 20X increase from the year before – to deploy new capital and expand its technology in more areas of the category There are plans to broaden the stack. Consumer goods (which cover items such as mixer grinders and TVs) is an area that was expanded last year, and said it accounted for 15% of revenue in the last six months.
It currently has 25 customers in the US, Canada, Europe and other international markets. Acharya said the startup plans to open offices abroad this year as it scouts for more international customers.
“We are excited to partner with Zetwerk in the next phase of their journey as they expand their value proposition globally. Zetwerk’s operating system for manufacturing has digitized many supply chains end-to-end, ensuring timely delivery and high quality standards. “This has led to rapid growth in India and internationally, becoming one of the most important manufacturing platforms globally,” Neil Shah, partner of GreenOx Capital, said in a statement.