Zetwerk Plans Up to $525 Million India IPO as B2B Manufacturing Unicorn Readies Public Filing

Bengaluru-headquartered contract manufacturing tech platform Zetwerk is set to take a definitive step toward Dalal Street, preparing to file public offer documents for an Initial Public Offering (IPO) seeking to raise up to $525 million. The move comes as the company advances its timeline for a domestic listing following review processes by the Securities and Exchange Board of India (SEBI).

The market debut represents one of the most closely tracked public listings within India’s startup and precision manufacturing ecosystem, setting a major benchmark for venture-backed enterprise hardware and industrial platforms.

Issue Structure and Syndicate Mandates

The proposed public issue is expected to comprise a substantial fresh issuance of shares alongside an Offer for Sale (OFS) component by existing institutional investors and promoters.

Zetwerk had previously leveraged SEBI's confidential pre-filing route earlier in the year. Under Indian regulatory guidelines, companies electing the confidential filing mechanism are required to transition to public filings before launching book-building exercises. SEBI issued its regulatory observations on the company's pre-filed draft papers during July.

To steer the public issue, Zetwerk has lined up a syndicate of domestic and international investment banks, including:

• Kotak Mahindra Capital (acting as lead banker)
• Morgan Stanley
• Goldman Sachs
• JM Financial
• Avendus Capital
• HSBC
• Pantomath Capital Advisors

Private Backing and Pre-IPO Capital Infusion

Ahead of the public filing, Zetwerk solidified its balance sheet through a ₹500 crore pre-IPO round secured from Bharat Value Fund, a SEBI-registered Category II Alternative Investment Fund managed by Pantomath Group’s asset management arm.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, and Rahul Sharma, Zetwerk reached unicorn status in 2021. It has accumulated backing from prominent global and domestic venture capital investors, such as Peak XV Partners, Lightspeed India Partners, Greenoaks Capital, Khosla Ventures, and Baillie Gifford, alongside high-profile individual backers like IndiGo co-founder Rakesh Gangwal. In private fundraises, the company had commanded valuations between $3 billion and $4 billion.

Operational Footprint and Financial Trajectory

Zetwerk operates as an end-to-end manufacturing network provider, connecting enterprise clients with custom manufacturing capacities while running its own specialized fabrication and assembly units. Its operational capabilities span:

• Consumer electronics and IT hardware
• Printed Circuit Board (PCB) assembly and precision engineering
• Aerospace and defence components
• Renewable energy equipment and industrial infrastructure

The company operates multiple facilities across India, North America, and Europe, serving global clients such as Samsung, Volvo, and Honeywell.

On the financial front, Zetwerk has focused on shifting its business mix toward high-margin manufacturing services rather than lower-margin trading activities. For FY25, company filings indicated that while consolidated revenue stood at ₹12,798 crore, operational efficiencies helped cut net losses significantly to ₹371 crore from ₹918 crore in FY24, accompanied by positive operating EBITDA.

Significance for Indian Capital Markets

The launch of Zetwerk's public offering coincides with sustained domestic market appetite for new-age manufacturing listings. As multinational original equipment manufacturers (OEMs) actively diversify supply chains outside China, Indian contract electronics manufacturers and component suppliers have enjoyed strong institutional tailwinds. Zetwerk's pricing and subsequent reception on Indian exchanges are expected to set a critical valuation multiple for the next generation of private manufacturing startups looking to tap Indian equity markets.

Tags: Zetwerk SEBI IPO Electronics Manufacturing Kotak Mahindra Capital Peak XV Partners