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Zetwerk's revenue up 6 times to Rs 4,961 crore, operating loss at Rs 42 crore in FY22

The B2B manufacturing service marketplace's revenue grew to Rs 4,961 crore in FY22 from Rs 835 crore in the previous year. If the non-cash ESOP expenses were to be omitted, Zetwerk would report an Ebitda profit of Rs 57 crore, it said

September 22, 2022 / 08:42 PM IST
Amrit Acharya, cofounder and chief executive officer of Zetwerk.
Image Credits: VCCircle

Amrit Acharya, cofounder and chief executive officer of Zetwerk. Image Credits: VCCircle

Business-to-business (B2B) manufacturing service marketplace Zetwerk recorded an annual operating loss of Rs 42 crore in FY22 on account of a rise in non-cash employee stock option plan (ESOP) expenses as against a loss of Rs 43 crore in the previous year.

Operating revenue grew six-fold to Rs 4,961 crore during the year against a revenue of Rs 835 crore in the previous year, the startup said in a statement on September 22.

The firm said if the non-cash ESOP expenses were to be omitted, Zetwerk would report earnings before interest, tax and amortisation (EBITDA) of Rs 57 crore.

In FY20, the company’s EBITDA loss amounted to Rs 26 crore. Zetwerk clocked a gross merchandise value (GMV) of Rs 5,718 crore for the year ended March 31, 2022.

“Most of Zetwerk’s growth has come on the back of increased spending from repeat customers who use Zetwerk technology and supply chain to drive faster lead times, improved quality, and better visibility into their sourcing requirements,” Zetwerk said.


Following supply chain disruptions due to Covid-19 over the last two years, customers increasingly prefer reliability and transparency in supply chains, leading to an increased demand for Zetwerk's services, the statement added.

Industrial segment boost

Zetwerk revenue is mainly from supplying large manufacturing setups with infrastructural inputs and fabricated components.

It provides services for sand casting, investment casting, fabrication, precision machining, forging sheet, metal fabrication, injection molding, surface heat treatment, metal injection molding extrusion, etc. It also offers onsite services.

Revenue from the industrial segment contributed 70 percent to the total revenue. The consumer segment accounted for the remaining 30 percent.

In 2020-21, the company also decided to diversify its services beyond India and ventured into international markets such as North America.

It also added consumer business to its portfolio in addition to the industrials segment.

International revenue accounted for about 16 percent of the business, the rest came in from the domestic market, the statement said.

Order book

The company secured orders worth Rs 11,200 crore at the group level in the year ended March 31, 2022, an increase of 200 percent over the previous year.

For the next 12 months, Zetwerk's management has chalked out a strategic plan like tapping into the revival of private capital into new factories and earning through exports to leverage the opportunities that the Indian market has to offer.

“We see strong themes emerging for Indian manufacturing like solid domestic demand driven by a revival in private capital into new factories, We expect an increase in exports as countries increasingly opt for China+1 strategy for sourcing in addition to US-led diversification into India and other Asian manufacturing destinations,” the statement said.

“A robust order book, strong balance sheet, a well-diversified business portfolio and proven execution capabilities enable the company to capitalise on the growth opportunities both in India and overseas,” it said.

Founded in 2018 by Amrit Acharya, Balaraman Ramakkrushnan, Rahul Sharma, Srinath Ramakkrushnan, and Vishal Chaudhary, the company has raised $554 million in funding to date.

The company counts CRED founder Kunal Shah and Oyo’s Ritesh Aggarwal also as its angel backers.
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Bhavya Dilipkumar
first published: Sep 22, 2022 12:18 pm
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