When you want to buy a refrigerator or TV, you can walk to a nearby electronics store or visit an e-commerce website such as Amazon. But when you are looking for chassis parts for cranes, doors, or other machines, where do you go?
For many companies around the world, the answer to this question is increasingly based on Bangalore-based startup Zetwerk.
This three-year-old startup company operates a business-to-business market for manufacturing products, connecting original equipment manufacturers and EPC (engineering procurement and construction) customers with manufacturing small businesses and businesses.
All the products it sells today are customized. “No one has such inventory. You get the order, find the manufacturer and the manufacturer.” Amrit Acharya explained.
Its customers are all over the infrastructure field, in two major industries including processing plants, oil and gas, steel, aviation, medical equipment, clothing, and luxury goods of which there are more than 250, compared with more than 100 a year ago, and hope Connected with Zetwerk through digital design, hoping to convert it into a physical product.
Customers are not alone in seeing the value of Zetwerk. The Indian startup said on Wednesday that it has raised US$120 million in a Series D financing led by existing investors Greenoaks Capital and Lightspeed Venture Partners. Existing investors Sequoia Capital and Kae Capital also participated in the D round of financing.
Zetwerk was co-founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary. They had been considering this idea long before Acharya and Ramakkrushnan joined forces to solve this area.
Both of them studied at IIT Madras, participated in the same exchange program in Singapore, and were colleagues of ITC, a conglomerate headquartered in Kolkata.
During their work in the company, they realized that part of the product manager’s work in the company was dealing with millions of suppliers and their manufactured products.
This process is outdated: without a database, people cannot track goods. The early version of Zetwerk was the supplier’s database, and it was a direct response to this. However, after listening to the requirements of its customers, the startup saw a greater opportunity and transformed itself into a mature market through integration with third-party suppliers. Once the company placed an order, Zetwerk allowed them to keep a close eye on the manufacturing schedule and the shipping schedule. There is also a quality check.
Zetwerk operates in such a unique field today-said Shailesh Lakhani, managing director of Sequoia India, that the startup defines a new market category-overall, it does not compete with any other company in India or South Asia.
India’s own opportunities are huge. According to industry reports, today’s manufacturing industry accounts for 14% of India’s GDP. Vaibhav Agarwal, a partner at Lightspeed, estimates that India’s market size is as high as 40 to 60 billion U.S. dollars, and global trade headwinds have created opportunities to meet international demand.
As more and more companies expand or relocate their manufacturing operations to India partly due to India’s imposing import tariffs and geopolitical tensions with China, the global manufacturing hub, this opportunity has only become greater in recent years.
Acharya said: “India has a deep depth in manufacturing, but many of them have not been well tapped.”
Zetwerk tripled last year and reported revenue of $43.9 million in the fiscal year ending in March, a 20-fold increase over the same period last year.
Zewtwer plans to deploy new capital to expand into more categories and expand its technology stack.
Consumer products including products such as mixers and televisions are areas where Zetwerk expanded into last year and said it accounted for 15% of revenue in the past six months.
There are currently 25 customers located in the United States, Canada, Europe, and other international markets. Acharya said the startup plans to find overseas offices this year to find more international customers.
Greenoaks Capital Partner Neil Shah said in a statement: “This has led to rapid growth in India and internationally, and has the potential to quickly become one of the most important manufacturing platforms in the world.