Zetwerk Planning To File IPO Draft Papers In Next Six Months: Report

B2B manufacturing unicorn Zetwerk is reportedly looking to file its draft papers for an initial public offering in the next six months, aiming to raise $400-500 Mn.

According to an ET report, the IPO will include a small secondary component, with Axis Bank, Goldman Sachs, and Kotak Mahindra appointed as bankers for the issue. 

While the outer limit for filing IPO papers is nine months, sources told ET that the Bengaluru-based firm is aiming to go public within this calendar year.

Zetwerk is eyeing a valuation of over $5 Bn as it strengthens its global presence, particularly in the US, while expanding its in-house manufacturing capabilities.

“A few more bankers will be added, but Axis is the lead bookrunner for the issue, with a planned 10% dilution to raise $400–500 Mn,” a source said. Given that the company is only six years old, the secondary component—where existing investors sell their stake—will be small, the source added.

Zetwerk has confirmed the development to Inc42. The story will be updated based on their responses.

Founded in 2018 by Srinath Ramakkrushnan, Amrit Acharya, Rahul Sharma, and Vishal Chaudhary, Zetwerk connects vendors and suppliers with manufacturing companies for procuring industrial machine components. 

The startup entered the unicorn club in 2021. It has raised a total funding of over $700 Mn till date and counts the likes of Peak XV Partners, Lightspeed, Mars Growth Capital, among others, as its backers.

Last year, the startup also announced its foray into IT hardware and electric vehicle (EV) component manufacturing. Additionally, it set aside INR 1,000 Cr ($122 Mn) to invest in electronics manufacturing.

Zetwerk competes with the likes of Moglix, OfBusiness, among others. 

This comes as the startup prepares to raise up to $500 Mn through its IPO. In October last year, Inc42 reported that the company had begun discussions with investment bankers, including JP Morgan, Axis Capital, Goldman Sachs, Jefferies Financial Group, JM Financial, and Kotak Mahindra Bank, for its public listing.

Last month, reports indicated that the Peak XV-backed B2B marketplace had finalized six bankers—Axis Capital, Goldman Sachs, Jefferies Financial Group, JM Financial, JPMorgan Chase & Co, and Kotak Mahindra Bank—to lead its potential $500 Mn IPO later this year. In the same month, ArisInfra Solutions secured INR 80 Cr through a pre-IPO placement.

This month, Captain Fresh raised INR 250 Cr in a pre-IPO round led by Prosus Ventures, Accel, and Tiger Global.