Zetwerk, the fast-growing B2B manufacturing startup, has raised $90 million in a fresh funding round led by Khosla Ventures.
Zetwerk, a prominent B2B manufacturing unicorn, has adjusted its initial public offering (IPO) timeline, now targeting a public listing within the next 15 to 24 months. This strategic decision aligns with the company’s intensified focus on scaling its electronics manufacturing services (EMS) to meet the burgeoning demand in India’s manufacturing sector.
Revised IPO Timeline
- Initial Plans: Earlier reports indicated that Zetwerk had finalized Axis Capital, Goldman Sachs Group, and Kotak Mahindra Bank to lead its potential IPO, aiming to raise $400 million to $500 million at a valuation of approximately $5 billion.
- Current Outlook: CEO Amrit Acharya has now stated that the IPO is anticipated within the next 15 to 24 months, effectively postponing the public listing to late 2026 or early 2027. financialexpress.com
Expansion of Electronics Manufacturing
- New Chennai Facility: Zetwerk inaugurated a 15-acre manufacturing unit in Chennai dedicated to producing control boards for appliances such as refrigerators, washing machines, air conditioners, and IT hardware. This facility is expected to employ 1,200 skilled workers at full capacity.
- Investment in EMS: The company has committed ₹1,000 crore to expand its EMS capabilities, increasing its assembly lines from 16 in a single Noida factory to 60 across six facilities. This expansion aims to boost production capacity to over 4 million units per month.
Strategic Partnerships and Leadership Enhancements
- Collaboration with SMILE Electronics: Zetwerk has partnered with SMILE Electronics to establish three advanced IT hardware factories in India, with the first located near Bengaluru. These facilities will focus on assembling and testing IT hardware, including desktops and laptops. insights.zetwerk.com
- Leadership Appointments: To bolster its EMS division, Zetwerk has onboarded industry veterans and invested in advanced manufacturing facilities, aligning with India’s goal to become a global electronics manufacturing hub.
Conclusion
Zetwerk’s recalibrated IPO timeline reflects a strategic emphasis on strengthening its electronics manufacturing capabilities. By investing heavily in infrastructure, forging strategic partnerships, and enhancing leadership, Zetwerk is positioning itself to capitalize on the growing demand for electronics manufacturing in India. This approach not only underscores the company’s commitment to operational excellence but also aims to maximize shareholder value in the lead-up to its anticipated public offering.
Note: The information provided is based on reports available as of March 16, 2025.
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