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New Delhi: Zetwerk Manufacturing, a B2B online marketplace, has completed three rounds of share buybacks worth $8.3 million (around 60.92 crore) from its employees and early investors, the Bengaluru-based startup said on Wednesday.

Zetwerk has over 400 employees and a large section of them participated in the employee stock options (ESOPS) liquidation process to augment their wealth, as per the startup. It also enabled exits for early-stage investors.

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The startup had raised $120 million in series-D funding from Greenoaks, Lightspeed, Sequoia and Kae Capital in February 2021.

"The aggressive growth in the past two years reflects the role played by Zetwerk employees, some of whom chose to be a part of the journey when the company existed only on paper," said Amrit Acharya, chief executive officer and co-founder, Zetwerk Manufacturing. “This step materializes in wealth creation for the employees and reaffirms the confidence of the founders and investors in the business."

ESOPs allow employees to acquire ownership interest in the company, which they can sell back to the company later to generate wealth. It also allows companies to receive various tax benefits.

Several Indian startups have used ESOPs to raise capital in the last few months. In December 2020, gaming startup Mobile Premier League (MPL), raised $500,000 (approx 3.6 crore) from its existing employees. Likewise in January, credit card payment app CRED completed a 9 crore ESOP buyback during a Series C funding.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk has raised close to $200 million in several rounds of funding and is currently valued at $600-700 million, as per industry reports.

Products sold on Zetwerk are custom-made. After the startup receives an order they turn to their manufacturing partners who can make them. The startup has over 2,000 suppliers and over 250 customers from multiple sectors.

According to news reports, the startup's saw a revenue jumped by 20X to 322 crore in FY20 from 16 crore in FY19.

Zetwerk's marketplace has benefited hugely from the recent growth in the manufacturing sector and the emphasis by Indian government on local manufacturing.

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