In a major development for Tamil Nadu’s burgeoning startup ecosystem, Zetwerk, the Bengaluru-headquartered manufacturing marketplace with significant operations in Chennai, has finalized six prestigious financial institutions to lead its anticipated $500 million initial public offering (IPO) in 2025.
The company has appointed a powerful consortium of global and Indian investment banks, including Goldman Sachs Group, JPMorgan Chase & Co., Jefferies Financial Group, alongside domestic powerhouses Axis Capital, JM Financial, and Kotak Mahindra Bank, according to sources familiar with the matter.
This strategic move positions Zetwerk to potentially become one of Tamil Nadu’s largest startup success stories, as the company aims for a valuation of approximately $5 billion through its public listing. The development represents a significant leap from its current valuation of $3.1 billion, achieved after a recent $70 million funding round in early 2024.
“The manufacturing sector in Tamil Nadu has been instrumental in our growth journey,” said Amrit Acharya, CEO and co-founder of Zetwerk, in a recent statement to PTI. “Our strong presence in Chennai has helped us tap into the state’s robust industrial ecosystem, and this IPO will further strengthen our commitment to the region.”
The company’s growth trajectory in Tamil Nadu has been particularly noteworthy, with its Chennai operations serving as a crucial hub for connecting local manufacturing enterprises with global supply chains. Zetwerk’s platform has become increasingly vital for Tamil Nadu’s manufacturing sector, which accounts for a significant portion of the company’s impressive INR 17,564 crore ($2.1 billion) GMV achieved in FY2023-24.
Dr. Velumani Arokiaswamy, a prominent Tamil Nadu-based industrial expert, commented on the development: “Zetwerk’s success and impending IPO demonstrate the potential of technology-enabled manufacturing solutions in our state. This could pave the way for more manufacturing-tech startups to emerge from Tamil Nadu’s entrepreneurial ecosystem.”
The timing of Zetwerk’s IPO announcement coincides with Tamil Nadu’s push to establish itself as a preferred destination for manufacturing-focused startups. The state government’s recent initiatives to promote industrial corridors and manufacturing clusters have created an enabling environment for companies like Zetwerk to thrive.
Since its founding in 2018, Zetwerk has revolutionized the manufacturing procurement process through its B2B marketplace platform. The company has successfully raised over $700 million in funding to date, with notable investors including Peak XV Partners (formerly Sequoia Capital India), Greenoaks Capital, and Lightspeed Venture Partners.
For Tamil Nadu’s startup ecosystem, Zetwerk’s IPO represents more than just a financial milestone. It serves as a testament to the state’s ability to nurture and support technology-enabled manufacturing enterprises. The company’s success has already inspired a new generation of entrepreneurs in the region, focusing on solving industrial and manufacturing challenges through technology.
The proposed IPO is expected to create significant opportunities for Tamil Nadu’s manufacturing sector, potentially attracting more investment to the state’s industrial technology startups. It also positions Chennai as a key hub for manufacturing-tech innovations, alongside its traditional strength in automotive and electronics manufacturing.
