Zetwerk Moves Ahead with $450 Million IPO, Files Confidential DRHP

Using the secret route, B2B manufacturing firm Zetwerk allegedly filed DRHP for its $450 Mn (approximately INR 4,200 Cr) IPO. In a pre-IPO investment round, the business aims to raise $50-60 millions. In the past, Zetwerk's public listing was guided by Mahindra Capital, Avendus Capital, JM Financial, and the Indian branches of HSBC, Morgan Stanley, and Goldman Sachs.

This news follows rumours that circulated a week ago suggesting that the offer-for-sale (OFS) portion of Zetwerk's initial public offering (IPO) would make up the bulk of the company's $300 million in share value.

Business Operations of Zetwork

Rahul Sharma, Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary established Zetwerk in 2018 as a platform for full-stack manufacturing. The business manufactures hardware for consumers as well as components for renewable energy systems and industrial applications.

This is in addition to the fact that it helps its customers with logistics, delivery, quality control, and procurement. It has over a hundred manufacturing plants in Mexico, India, the United States, Germany, Spain, and Vietnam. The company runs on a business-to-business (B2B) contract manufacturing model in which customers submit product designs and Zetwerk manages the production, quality control, and delivery schedules in conjunction with its network of factories. Zetwerk raised $150 million in 2021, allowing them to join the unicorn club. Among its many supporters are Peak XV Partners, Lightspeed, and Mars Growth Capital; together, they have contributed nearly $700 million.

IPO Fever Continues to Rise High Among Startups

Even if new public offerings have slowed down recently due to the continuing armed war in West Asia, the pipeline of modern tech IPOs is strong, and the DRHP filing is happening at the same time. Startup RentoMojo, which rents out appliances and furniture, submitted its DRHP for an IPO last week.

The IPO will include a new issue of shares valued up to INR 150 Cr and an OFS of up to 2.84 Cr shares. Notably, Zetwerk is also battling a lawsuit brought by one of its former executives who is accused of utilising Zetwerk's secret data to start a competing enterprise. Among the defendants identified by the startup are Anirudh Reddy Edla, a former employee of Zetwerk and founder of Ayr Energy Inc.