Contracting platform Zetwerk receives SEBI nod for IPO

The Securities and Exchange Board of India (SEBI), on Friday, approved an initial public offering (IPO) proposal for Zetwerk Manufacturing Business Ltd, a B2B managed contract manufacturing platform.

The IPO is likely to include a fresh issue and an offer for sale by existing shareholders. Final details, including valuation and issue size, will be determined through the book-building process. The company’s existing investors include Khosla Ventures, Baillie Gifford, Rakesh Gangwal, Accel, Peak XV, GreenOak and Lightspeed.

The company itself operates a technology-enabled manufacturing platform that connects industrial demand with a distributed network of suppliers and manufacturing facilities. Its business spans sectors such as energy, electronics, defence, aerospace, and capital goods, along with a platform focused on industrial supply and raw material procurement.

The company operates in segments that are seeing increased activity due to shifts in global supply chains, including diversification beyond China, higher investments in data centre and infrastructure build-outs, and demand linked to energy transition and industrial capacity. It also participates in areas such as defence manufacturing and domestic production initiatives in India.

Zetwek, moreover, is also in talks to raise a $50-60 million pre-IPO funding round with a $3 billion valuation to improve its balance sheet and provide a partial exit to early investors. The issue is currently being managed by Kotak Mahindra Capital, JM Financial, Avendus Capital, Pantomath Capital, and the Indian units of HSBC, Morgan Stanley and Goldman Sachs.

Founded in 2018 by Amrit Acharya and Srinath Ramakkrushnan, Zetwerk has expanded its operations through a mix of owned manufacturing facilities and a large third-party supplier network globally.