Synopsis
Zetwerk IPO update: Zetwerk has filed a confidential prospectus with the Securities and Exchange Board of India for an IPO, and is planning a Rs 5,000 crore offering while exploring a pre-IPO round. The startup is facing weaker market conditions, with new-age IPOs under pricing pressure and investors seeking aggressive valuations. Its operating revenue fell 11% in fiscal 2025, though net loss narrowed.ET reported on Monday that the company was looking to file for a Rs 5,000 crore offering shortly.
Zetwerk is also in discussions to raise Rs 500 crore in a pre-IPO round from Bharat Value Fund and a clutch of high-net-worth individuals at a valuation of Rs 25,000-26,000 crore.
The company has made its filing amid weak market conditions, which are leading to new-age IPOs facing pricing pressure as public investors demand aggressive valuations, especially for loss-making companies.
For fiscal year 2025, Zetwerk reported an 11% drop in its operating revenue to Rs 12,798 crore, while its net loss narrowed to Rs 371 crore from Rs 918 crore in the previous fiscal year.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Zetwerk runs a managed marketplace that links large enterprise buyers with manufacturing suppliers across various sectors, including industrial machinery, electronics, renewables and aerospace.
The company has lined up Kotak Mahindra, Goldman Sachs, Pantomath Investment Banking, Morgan Stanley, HSBC and JM Financial as merchant bankers for the IPO.
Last July, founders Acharya and Ramakkrushnan infused Rs 600 crore into the company by raising personal debt, increasing their combined stake by about two percentage points. Earlier, in December 2024, Zetwerk had raised $70 million in a funding round led by Khosla Ventures, Rakesh Gangwal and Baillie Gifford, valuing the company at $3 billion (around Rs 25,000-26,000 crore), up from $2.7 billion in 2023.
With its IPO filing, Zetwerk joins a long list of new-age companies planning to go public in the next 12-18 months. The list includes PhonePe, which recently postponed its plans to list, Zepto, Flipkart, Oyo, Infra Market, Rentomojo, Razorpay and Acko.
