Network, An Indian business-to-business article manufacturing marketplace raised $ 21 million in a new round of financing to scale its operations across the nation and help local businesses find customers overseas.
San Francisco-based investment firm Greenoaks led the Series C financing round of the two-year Indian startup. Existing investors Accel, Kae Capital, Lightspeed and Sequoia Capital India also participated in the round, bringing Zetwerk's previous increase to $ 62 million.
Zetwerk was founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary and connects OEMs (Original Equipment Manufacturers) and EPC (Engineering Procurement Construction) with producing small businesses and companies.
In contrast to the more typical e-commerce companies, Zetwerk sells goods such as parts of a crane, doors, chassis of various machines and ladders. The startup serves customers in the areas of manufacturing, machining, casting and forging.
These are all tailor-made products. “Nobody has such stocks. You will receive the order, you will find manufacturers and workshops that manufacture it. Our customers are companies that build infrastructure, ”said Acharya, who acts as the managing director of Zetwerk.
“We index these small workshops and understand the types of products they have built before. These indexes help larger companies discover and work with them, ”he added. Once a company has placed an order, Zetwerk can track the progress of manufacturing and then shipping. This "hand position" is of crucial importance in this industry, since the production and shipping of these articles usually take more than two to three months.
theinformationsuperhighway said that Zetwerk is currently working with more than 150 companies and 2,500 small and medium-sized companies. The startup delivers more than 30,000 parts each month, a 100% increase since December last year, and has enabled several manufacturers in India to discover overseas customers.
"Zetwerk brings Indian manufacturing to the global stage and I'm proud to be part of its history," said Accel’s Prayank Swaroop.
Zetwerk has "developed unique software that enables an enormous global manufacturing market that connects OEMs and EPCs with industrial suppliers," said Neil Shah of Greenoaks Capital.
“Companies are increasingly trying to diversify their supply chain globally. Thanks to the Zetwerk platform, you can identify and work with supplier partners to deliver projects on time and with high quality. We are very excited to continue working with the Zetwerk team, ”he said.
Manufacturing contributes to 14% of India's GDP, but the nation lacks a supportive ecosystem to carry out projects more efficiently, Acharya said. The startup will use the fresh capital to fund its international expansion and introduce new categories, he said.
Acharya commented on how the coronavirus pandemic affected Zetwerk and told theinformationsuperhighway that the startup worked in several industries, some of which were still growing. "Overall, we're fine," he said.