Bengaluru-based Zetwerk, a B2B platform for custom manufacturing, has raised $9 million through its Series A funding round from Sequoia India, Accel and Kae Capital, according to a release. Prior to this, the firm had raised $1.2 million in the seed round during August 2018. Zetwerk was founded by IIT Madras and ITC alumni Amrit Acharya and Srinath Ramakkrushnan.
The firm works with mid-to-large original equipment manufacturer (OEM) companies from India and South-East Asia, who require procurement of custom products and machine parts which are not available off-the-shelf in the market. On the supply side, Zetwerk works with manufacturing SMEs, across multiple categories (fabrication, machining, casting, forging, etc).
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“We are growing 20-30% month-on-month. As of now, we are working with just 1,000 suppliers. We will onboard more suppliers and that’s where we want to invest. Furthermore, we also want to build more tools that will help our suppliers and buyers. Our suppliers are based in tier-2 and tier-3 cities. The goal is to build a pan-India network of our suppliers,” Acharya said. The firm claims 15,000 metric tonne per month capacity on its website and has over 20 transacting customers. It has executed over 500 custom projects.
“OEMs globally want to procure from these SMEs but lack a technology platform to discover which SME can meet their quality and delivery criteria. Zetwerk aims to solve this through our platform,” Ramakkrushnan said. Shailesh Lakhani, managing director at Sequoia Capital India Advisors stated in a release that Zetwerk operates in a large and fragmented market with little in the way of technology to drive efficiency and transparency.
“The founding team led by Amrit and Srinath have a demonstrated ability to execute and deep insights in the manufacturing domain. Sequoia India is excited to partner with them from the earliest days of the company’s journey,” he said. Prayank Swaroop, Partner at Accel said that Zetwerk aims at bringing information symmetry, efficiency and cost effectiveness.
“Today if you want to order a $5 bag of tea, you can find the best one online and it will ship to you from anywhere in the world. But if you want to order or sell a factory part worth thousands of dollars, there’s very little visibility into where to find the perfect part or buyer. Zetwerk aims to solve this important global problem,” he said.