In a strategic move ahead of its much-anticipated initial public offering (IPO), B2B e-commerce unicorn Zetwerk has raised INR 75 crore in debt funding from JM Financial, one of the investment banks reportedly appointed to manage its public market debut. This is another step in Zetwerk’s capital building journey as they get ready to list and could be valued at around USD 5 billion (~INR 43,087 crore).
According to RoC filings, Zetwerk’s board has approved the issue of 7,500 non-convertible debentures (NCDs) of INR 1,00,000 each. This debt raise of around USD 8.8 million (~INR 76 crore) adds to the company’s war chest as they get ready for expansion and market readiness before the IPO.
Founded by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk is a full-stack manufacturing services platform that connects enterprises with small and mid-sized vendors across fabrication, machining, casting, forging and galvanizing. They have a presence in India, the US, the Middle East, and Southeast Asia.
Financial Momentum and Capital Infusion
As of now, Zetwerk has raised over USD 850 million (~INR 7,325 crore) in total funding, inclusive of debt, as per market research. In December 2024, it secured approximately INR 565 crore (USD 67 million) in its Series F round led by Khosla Ventures and The Schiehallion Fund, with participation from Acron Heavy Industries, AEX4 LLC, and The Chinkerpoo Family Trust. The round valued the company at USD 3 billion (~INR 25,852 crore).
In a parallel effort to further solidify its capitalization table, Zetwerk has been in advanced discussions to raise an additional USD 20–30 million (~INR 172 – 258 crore) from family offices, high-net-worth individuals (HNIs), and ultra-HNIs. Most of these negotiations are reported to be in the final stages, with some already concluded successfully. This is a strategic move to optimize shareholding before the IPO.
Zetwerk has raised around USD 740 million (~INR 6,377 crore) before this debt transaction and December round, including a big USD 120 million (~INR 1,034 crore) led by Avenir Growth Capital.
IPO Plans on the Horizon
Zetwerk has big IPO plans and is looking to raise at least USD 500 million (~INR 4,309 crore) in the next 12 to 24 months. Investment banks for the listing are Axis Capital, Goldman Sachs, Jefferies, JM Financial, JPMorgan Chase and Kotak Mahindra Bank, as per Bloomberg. The IPO is expected to hit the markets by late 2025 or early 2026.
The fundraising and appointments are a sign that Zetwerk is looking to clean up its financials and get strong institutional backing as it enters the regulatory and market scrutiny that comes with a public listing.
Financials
Despite good topline growth, Zetwerk is bleeding. In FY24, the company’s gross revenue grew 26% to INR 14,435.72 crore from INR 11,448.66 crore in FY23. However, net losses ballooned to INR 919 crore, a ninefold increase, partially attributed to exceptional expenses totaling INR 371.7 crore.
Competitive Landscape
Zetwerk operates in a competitive B2B e-commerce landscape alongside players like Infra.Market, which recently secured USD 150 million (~INR 1,292 crore) in debt funding from Mars Growth Capital, and OfBusiness, another IPO-bound peer that recently raised INR 100 crore. Unicorn Moglix also remains a key rival in the sector.
Conclusion
With equity and debt financing in balance and a clear path to public markets, Zetwerk’s INR 75 crore debt raise from JM Financial is not just another fundraise but a deliberate step towards its IPO. The fact that it has attracted big-ticket investors and institutions despite being in a loss-making phase of scaling up is a testimony to its business fundamentals.
Now watch out for how it navigates the final lap to what could be the biggest IPO in India’s B2B commerce space. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription, stay tuned to IPO Central.