In a significant boost to Tamil Nadu’s manufacturing technology ecosystem, Bengaluru-based manufacturing platform Zetwerk has secured $90 million in fresh funding, elevating its valuation to $3.1 billion. The funding round, led by prominent investors Rakesh Gangwal and Khosla Ventures, marks a substantial increase from the company’s previous valuation of $2.7 billion in 2023.
The latest investment round also welcomed new investor Baillie Gifford, while existing backers Greenoaks and Avenir Growth reinforced their commitment to the manufacturing technology platform. This funding success underscores the growing importance of Tamil Nadu’s role in India’s manufacturing transformation, as Zetwerk continues to expand its presence in the state’s industrial corridor.
The investment comes at a crucial time as Zetwerk reports impressive growth, with a Gross Merchandise Value (GMV) of ₹17,564 crore (approximately $2.1 billion) for the fiscal year ending March 31, 2024. The company’s industrial segment, which includes Renewables and Precision Manufacturing, contributed to 92% of this value, highlighting the robust demand for advanced manufacturing capabilities in the region.
“This fresh capital will accelerate our expansion in key sectors like Renewables, Consumer Electronics, and Aerospace,” stated Amrit Acharya, CEO of Zetwerk. “Our presence in Tamil Nadu has been instrumental in achieving our growth targets, and we’re committed to strengthening this further. The state’s sophisticated industrial infrastructure and skilled workforce align perfectly with our vision for next-generation manufacturing.”
The company’s strategic focus on global markets has yielded significant results, with international operations in North America and Europe now accounting for 21% of its business. Working with over 10,000 suppliers across India, the U.S., Vietnam, and Mexico, Zetwerk has successfully delivered approximately $5 billion in lifetime GMV and serves more than 2,000 customers worldwide. Notably, 20% of its supply base is now located outside India, reflecting its commitment to diverse sourcing options.
Central to Zetwerk’s operational excellence is its proprietary ZETWERK OS, a comprehensive manufacturing operating system that manages the entire production cycle. “This software is critical for our customers’ success,” explained Acharya. “A typical customer order involves six Zetwerk suppliers, over 100 designs, and a two-month fulfillment timeline. Additionally, Zetwerk manages 1,000 customer contracts simultaneously. Zetwerk OS enables us to handle this complexity with unparalleled transparency, mitigating cost overruns and ensuring significantly higher on-time delivery rates compared to traditional factory-based manufacturing.”
For Tamil Nadu’s startup ecosystem, Zetwerk’s success represents a significant milestone. The state, already known for its manufacturing prowess, is seeing increased interest from global investors in its technology-driven manufacturing initiatives. This funding round is expected to create new opportunities for local suppliers and technology partners, further strengthening the state’s position in the global manufacturing value chain.
The investment also signals growing confidence in India’s ability to serve as a global manufacturing hub, particularly as companies worldwide seek to diversify their supply chains. Zetwerk’s expansion plans align with Tamil Nadu’s industrial policy, which emphasizes sustainable manufacturing practices and technological innovation.
As Zetwerk continues to grow, its impact on Tamil Nadu’s manufacturing landscape is expected to deepen, creating new opportunities for collaboration between traditional manufacturing units and technology-driven platforms. This fusion of manufacturing expertise with digital innovation positions the state as a key player in India’s journey toward becoming a global manufacturing powerhouse.
