Zetwerk raises $70M from Khosla Ventures and Rakesh Gangwal

Contract manufacturing startup Zetwerk has raised $70 million in its latest funding round at a valuation of $3.1 billion, led by Khosla Ventures and IndiGo Airlines Co-founder Rakesh Gangwal.

The other investors in this round included Baillie Gifford, Greenoaks, and Avenir Growth.

Zetwerk had earlier raised $20 million in March 2024, taking the total amount raised for the year to $90 million.

The company will use this investment towards expansion in its core business areas—renewables, consumer electronics, and aerospace.

The unicorn has cumulatively raised $740 million since its founding in 2018, according to Tracxn.

Zetwerk also noted that its gross merchandise value (GMV) grew to Rs 17,564 crore for the financial year 2023-24. It registered an adjusted EBITDA of Rs 191 crore. The company has an order book of Rs 12,839 crore.

Zetwerk Co-founder and CEO Amrit Acharya said in a statement, “The manufacturing sector has long grappled with challenges such as time delays, budget overruns, quality issues, and limited supplier transparency. These persistent issues have significantly impacted production timelines. Now, as countries strive to diversify their supply chains in response to global geo-political shifts, a new layer of complexity has been added.”

He said Zetwerk is positioning itself as a key partner for global customers seeking to navigate the near-shoring or on-shoring landscape.

The startup has more than 2,000 customers in India, North America and Europe. Zetwerk built its GMV from the industrial segment, which includes renewables and precision manufacturing, contributing 92% to the total. The International GMV accounted for 21% of the business.

“Zetwerk has quickly become a leading manufacturing marketplace that gives customers options around the world to build in any arena from industrials and consumer electronics to aerospace and defence,” said Jai Sajnani of Khosla Ventures.