B2B manufacturing startup Zetwerk is reportedly seeking to raise up to $750 Mn via a public issue. The Bengaluru-based contract manufacturing startup has hired Kotak Mahindra Capital, JM Financial, Avendus Capital, and the Indian units of HSBC, Morgan Stanley, and Goldman Sachs to manage its IPO, according to people aware of the development.
Bloomberg reported that Zetwerk plans to submit its draft papers early next year through the confidential filing route.
Sources told Inc42 that the fresh issue will likely dominate the public listing, while there will be an offer for sale (OFS) component as part of the issue.
The company, however, declined to comment on the development.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary and Rahul Sharma, Zetwerk works as a full-stack manufacturing and supply chain partner to global enterprises.
How Zetwerk Makes Money
It claims to operate more than 100 production facilities across India, the US, Germany, Spain, Vietnam and Mexico. The startup builds industrial components, electronics, EV parts, renewable energy equipment and consumer hardware, while also managing procurement, quality checks, logistics and delivery for clients.
The business follows a B2B contract manufacturing model in which customers share product designs, Zetwerk matches them with factories in its network, and oversees production, quality and timelines.
Zetwerk's competitive edge comes from its wide network of factories, its experience across multiple heavy-industry segments, and its in-house engineering teams.
Ahead of the IPO, the company has also opened a 15-acre electronics facility in Chennai that will produce control boards for appliances and IT hardware. At full capacity, it will employ about 1,200 workers.
Zetwerk is also expanding its renewables manufacturing capabilities.
Last year, the manufacturing startup raised capital several times, including an INR 43 Cr round from Arc Investments and Oriental Biotech, and $70 Mn from Khosla Ventures and Rakesh Gangwal, valuing the company at around $3.1 Bn.
The IPO move comes at a time when Zetwerk is fighting a legal dispute in the US. The company has filed a case in a Texas court against Ayr Energy and its founder, and former Zetwerk executive, Anirudh Reddy Edla.
The petition alleges misuse of trade secrets, breach of fiduciary duty, unfair competition and the hiring of key Zetwerk employees who allegedly carried confidential data.
Zetwerk claims Ayr secured more than $250 Mn in orders within months using information taken from Zetwerk's internal systems, causing losses of nearly $77 Mn in customer contracts. Ayr Energy, backed by General Catalyst, operates in the same market and competes directly with Zetwerk's renewables and infrastructure business.