BackZetwerk nearly triples revenues to ₹949 crore in FY21
Zetwerk services 500 clients across industries including oil and gas, renewable energy, consumer goods, electric vehicles, in India and the US. Close to 85% of the firm’s revenues come from the production of industrial products, while consumer goods contribute to the remaining 15%
PremiumBENGALURU: Contract manufacturer of capital and consumer goods, Zetwerk Manufacturing Businesses Pvt Ltd on Wednesday said it has nearly tripled its revenue growth, fueled by manufacturers utilising production-linked incentive (PLI) schemes and pivoting towards digital processes to streamline operations.
The company clocked revenues worth ₹949 crore during FY21, as compared to ₹360 crore a year ago, and narrowed its losses to ₹19 crore from approximately ₹29 crore in FY20.
By leveraging its manufacturing network, Zetwerk helps businesses and original equipment manufacturers (OEMs) produce goods, helping them reduce costs and lead times while allowing them to increase their production capacities.
At present, it services 500 clients across industries including oil and gas, renewable energy, consumer goods, electric vehicles, in India and the US. Close to 85% of the firm’s revenues come from the production of industrial products, while consumer goods contribute to the remaining 15%.
After the easing of covid-19 restrictions last year, Zetwerk accelerated deliveries before the onset of the second wave India, as customers preferred virtual monitoring and social distancing in manufacturing project management, the company said.
“As we look to break even this fiscal year (FY22), our focus will continue to be on growth and scaling our manufacturing base in the country. We continue to grow our business in North America, as we see demand from industries providing electric vehicles, renewable energy and medical devices," said Amrit Acharya, co-founder and chief executive officer (CEO), Zetwerk in an interaction with Mint.
US and international markets, at present, contribute to 10% of the company’s overall revenues, and are expected to grow to 25% by end of FY’22, Acharya added. He further explained that the company will continue the revenue growth run rate and is expected to grow revenues by another three-fold in the current fiscal.
The company, at present, claims to have an order book of ₹4500 crore, which it aims to deliver on in the coming 12 months. Over 80% of Zetwerk’s invoicing revenues come from repeat and regular customers.
The firm recently set up its office in the US and claims to have 50 clients across North America which leverage the company’s services to manufacture in India.
Zetwerk processes orders through a manufacturing network of 1500 small manufacturers in India, coupled with a long tail of suppliers.
The startup is also looking at inorganic growth through acquiring software companies, which are solving for product delivery and supply chains in the industries Zetwerk operates in.
Earlier in February, this year, the startup raised $120 million as a part of its Series D financing round led by existing investors Greenoaks Capital and Lightspeed Venture Partners. Existing investors Sequoia Capital and Kae Capital also participated in the round.
The startup also completed three rounds of share buybacks worth $8.3 million (around ₹60.92 crore) from its employees and early investors, in March this year. Zetwerk also forayed into new segments of aerospace and defence, earlier this year.
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