Mumbai: Zetwerk Manufacturing Business Pvt Ltd has agreed to raise fresh capital of over $100 million from existing investor Avenir Growth Capital, according to two people familiar with the development.
Avenir is also acquiring shares from secondary investors, in addition to investing directly in the company, the people cited above said.
The primary and secondary shares were sold at a valuation similar to Zetwerk’s previous round, one of the people cited above said. Zetwerk last raised capital at a valuation of $2.7 billion in December 2021. The total deal size is around $100 million to $200 million.
A Competition Commission of India filing on Friday said Avenir is acquiring a 2.96% stake in Zetwerk, but did not give other details.
A Zetwerk spokesperson confirmed that the company is in the final phase of completing a new equity round. The spokesperson said the round will see new and existing investors, without giving details.
“This infusion of funds will allow Zetwerk to accelerate its growth plans, build cutting-edge tools and technologies, expand its global presence, and further strengthen its position as a market leader across various industrial and consumer manufacturing categories,” the company spokesperson added.
Avenir did not respond to requests for comments. Avenir had last invested in 2019.
Zetwerk offers manufacturing services to sectors such as consumer goods, apparel, defence, space and aerospace, according to its website.
Zetwerk reported net sales of ₹4,960 crore in FY22, with an overall loss of around ₹60 crore. However, it reported an adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) profit of around ₹60 crore in FY22, without including Employee Stock Option Plan expenses.
Currently, Zetwerk gets around 85% of its business from the Indian market and about 10% from its international customers, Acharya said in a previous interview. It operates in 25 countries, according to its website.
