Zetwerk - How Does This World-Class Manufacturing Company Make Money?

The logistics and supply chain industries have several elements that are linked to each other to ensure a smooth flow of productivity. The supply chain industries are evolving with the use of the right technology and other methods.

The supply chain industry has always been a complex subject and of keen importance to the efficient operation of an enterprise. One such company called Zetwerk in India is one of the leading providers of end-to-end manufacturing supply chain services to cater to their customers' needs.

Let's discover everything about Zetwerk's growth in all these years: founders, business model, revenue model, and a lot more.

Zetwerk - Company Highlights

Zetwerk - About
Zetwerk - Industry
Zetwerk - Founders and Team
Zetwerk - Startup Story
Zetwerk - Mission
Zetwerk - Name and Logo
Zetwerk - Service
Zetwerk - Business Model
Zetwerk - Revenue Model
Zetwerk - ESOP
Zetwerk - Challenges Faced
Zetwerk - Funding and Investors
Zetwerk - Acquisitions
Zetwerk - Growth
Zetwerk - Partnership
Zetwerk - Awards and Achievements
Zetwerk - Competitors
Zetwerk - Future Plans

Zetwerk - About

Zetwerk is a supply chain management company that engages in connecting with manufacturers to give customized results. This Bangalore-based company provides end-to-end manufacturing solutions to help customers reduce costs, optimize suppliers, and execute production in a fast-paced manner.

The company also has partners worldwide who deal in capital goods and consumer goods categories and offer a full spectrum of manufacturing services.

Zetwerk - Industry

The Statista analysis indicates that there is significant growth potential for the Machinery and Equipment market. Value added is forecast to reach US $17.83 billion in 2024, and from 2024 to 2028, it is anticipated to rise at a compound annual growth rate (CAGR) of 8.68%.

Furthermore, the projection projects that the market's output will reach US $60.43 billion in 2024, growing at a predicted CAGR of 2.11% between 2024 and 2028. These numbers highlight an upward trend in value added and total output, pointing to a bright future for the machinery and equipment industry.

Zetwerk - Founders and Team

Vishal Chaudhary

Vishal Chaudhary is the Co-Founder of Zetwerk. He is the alumnus of IIT, Kharagpur in Chemical Engineer. He started his career working as a Project Manager at ITC to working as Lead and then Organisation & Business Engine at RIVIGO.

Amrit Acharya

Amrit Acharya is the Co-Founder and CEO of Zetwerk. Holding a degree in electrical engineering from IIT, Madras. During his course of career growth, Amrit has been associated with many companies. Before starting Zetwerk, he worked at Robert Bosch, Avaya, ITC, McKinsey & Company, Foundation Capital, and Monsanto Growth Ventures.

Srinath Ramakkrushnan

Srinath Ramakkrushnan is the Co-Founder of Zetwerk. Srinath holds a bachelor's degree from IIT, Madras in Mechanical Engineering. Before venturing to become the co-founder of Zetwerk, Srinath has been associated with industries. Some of them are General Motors, Acumen Fund, Selco India, Austrian Energy & Environment (Now Acquired by Doosan), ITC Limited, and BlackBuck (Zinka Logistics Solutions Pvt. Ltd.), among others.

Rahul Sharma

Rahul Sharma is an alumnus of IIT, Roorkee. Currently, he is one of the founders of Zetwerk. He was also the co-founder of Prepnut, which was a platform to help job seekers prepare for interviews and other exams.

Rahul Sharma started his career as a Senior Field Engineering at Schlumberger and as a Head at BlackBuck (Zinka Logistics Solutions Pvt. Ltd.).

The company has employees ranging from 1,000 to 5,000, as per LinkedIn.

Zetwerk - Startup Story

In order to transform supply chain management, Acharya and his three IIT classmates, Srinath Ramakkrushnan, Vishal Chaudhary, and Rahul Sharma, created Zetwerk in 2018. Zetwerk is a B2B software company. Within its first month of operation, the company quickly obtained a term sheet for a $1.5 million seed round, indicating early promise.

But in an unexpected turn of events, Zetwerk changed course in a matter of thirty days, going from a software-centric business model to a B2B marketplace that specialized on supplier sourcing and custom manufacturing. Even though it was a risky move, Acharya was dubious about it because investors like Sequoia and Kae Capital were in the dark about it. When Acharya broke the news to them, he was afraid of their response, but he was relieved because both investors applauded the change.

Zetwerk's journey as a dynamic and adaptive participant in the B2B bespoke manufacturing sector began at this crucial juncture, underscoring the rewarding yet unpredictable character of the startup landscape.

Zetwerk - Mission

The company's mission on its websites states, "To change the way manufacturing is done."

Zetwerk - Name and Logo

Zetwerk's legal name is Zetwerk Manufacturing Businesses Pvt. Ltd.

Zetwerk - Service

Zetwerk provides various services, including:

• Manufacturing Services
• Zetwerk Managed Inventory
• Quality Control
• Managed Supply Chain

Zetwerk - Business Model

The core of Zetwerk's business model is the production of operating systems that maximize productivity, transparency, and efficiency. The organization guarantees a smooth experience by giving clients total control over their projects through simple accessibility and tracking.

Zetwerk produces anything from clothing to aircraft engines, serving a wide range of sectors. Its production solutions put clarity, quality, and precision first, providing customers with a wide selection of options that are customized to suit exacting requirements at prices comparable to those of an industrial setting.

Zetwerk - Revenue Model

Zetwerk makes revenue from different resources; some of the prominent ones are:

Fabricated Manufacturing Inputs:

A sizeable portion of Zetwerk's income comes from providing major manufacturing setups with constructed parts and infrastructure inputs to assist their production processes.

Chain of Supply Services:

The business manages the procurement, production, and delivery of manufactured inputs for manufacturing clients, offering complete supply chain solutions.

Purchasing Health Care:

In order to boost profits, Zetwerk has expanded into the healthcare procurement space by locating and delivering medical components and equipment.

Acquisitions in the Apparel Sector:

Zetwerk expands its revenue stream by sourcing fabrics, machinery, and components for garment production through its venture into the apparel industry procurement market.

Zetwerk - ESOP

Zetwerk, the B2B marketplace specializing in custom manufacturing, has demonstrated a proactive approach to employee benefits through strategic moves in its Employee Stock Options (ESOPs). As part of its commitment to empowering its employees, the corporation reportedly added Rs 4.77 crore to its pool of stock options as per news report of September 24, 2020. Zetwerk awarded 24 worthy employees 917 stock shares through the ESOP program as part of this initiative.

But a later event, according to a March 2021 news article, demonstrated the company's financial stability when it purportedly repurchased $8.3 million worth of ESOPs from both early investors and employees. This action demonstrates Zetwerk's dedication to thanking its employees and underscores the company's wise financial choices that benefit both stakeholders and employees.

Zetwerk - Challenges Faced

The original idea of Zetwerk, which was founded in December 2018, was to arrange suppliers for businesses. After a seed round in May 2018, the software was developed over the course of three months by the team. When the device was shown to customers, they gave it positive reviews; still, two major problems surfaced.

First off, the software sales cycle for Indian clients took more than a year, which caused a delay in the collection of income. Secondly, Zetwerk faced a hurdle as an early-stage startup because it was impossible for them to get orders without being able to travel abroad for international clients like Siemens and GE, where decision-making took place outside of the Indian headquarters.

In the face of these obstacles, manufacturers kept asking to use Zetwerk's software to find new suppliers.

Zetwerk - Funding and Investors

Zetwerk has raised $798.3 million in 14 rounds of funding.

Here are the funding details:

Zetwerk - Acquisitions

Zetwerk has acquired four companies to date.

Here are the details:

Zetwerk - Growth

Zetwerk, some of the growth highlights are:

• It has reduced lead times by 50% as of February 2024.
• It has manufactured more than 9 million parts as of February 2024.
• It has over 1800 active customers as of February 2024.
• It has been delivered to 20+ countries as of February 2024.

Financials

Zetwerk - Partnership

Zetwerk has partnered with LONGI (the worldwide leader in solar technology) in July 2023 and has also partnered with other companies like:

• Tata Steel
• Sterling and Wilson
• Flipkart

Zetwerk - Awards and Achievements

Zetwerk has achieved several achievements and earned numerous awards. Among the notable ones are:

• The company has bagged an order of Rs 126 crore from L&T for the bullet train project in April 2022.
• In the year 2022, the company won the prestigious Mint StartupIcon Award in the infrastructure and logistics category.
• Zetwerk won the 2022 Startup Leader of the Year Award.

Zetwerk - Competitors

The company has some competitors; they are as follows:

• Arconic Lafayette
• Bloom Procurement Services
• wherEX
• Teegara
• Indiamart
• Moglix
• Udaan
• Industrybuying
• Chizel
• Infra.Market

Zetwerk - Future Plans

Zetwerk unveiled a visionary strategy in October 2023, allocating Rs 1,000 crore to bolster its production of consumer electronics. Rahul Sharma, a co-founder, disclosed the company's intention to actively pursue government partnerships, diversify into new markets, and extend its manufacturing operations outside of the northern region.

Zetwerk's dedication to significant expansion and market presence in the dynamic consumer electronics industry is reflected in this strategic endeavor.

FAQs

Who is the founder of Zetwerk?

Vishal Chaudhary, Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma are the founders of Zetwerk.

Is Zetwerk a unicorn?

Yes, Zetwerk entered the unicorn club in 2021.

What does Zetwerk do?

Zetwerk provides end-to-end supply chain solutions to companies.