Zetwerk Manufacturing Business Limited has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), clearing a key regulatory hurdle for the company's stock market debut.
The proposed IPO will comprise a fresh issue of shares and an offer for sale by existing shareholders. The final issue size and valuation will be determined through the book-building process.
Moneycontrol had earlier reported that Zetwerk confidentially filed its draft IPO papers and is looking to raise up to Rs 4,200 crore (about $450 million).
The company is also in talks to raise a $50-60 million pre-IPO funding round to strengthen its balance sheet and provide a partial exit to early investors. Kotak Mahindra Capital, JM Financial, Avendus Capital, Pantomath Capital, and the Indian units of HSBC, Morgan Stanley and Goldman Sachs are managing the issue.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Ankit Fatehpuria and Rahul Sharma, Zetwerk operates a technology-enabled manufacturing platform connecting industrial customers with a distributed network of suppliers and manufacturing facilities across sectors such as energy, electronics, defence, aerospace and capital goods.
The company uses its proprietary Zetwerk OS platform to manage sourcing, production planning, supplier coordination and project execution.
It has expanded from a digital manufacturing marketplace into an end-to-end industrial manufacturing platform and also manufactures laptops, hearables, wearables and IT hardware while integrating backward into printed circuit board (PCB) production.
Backed by investors including Khosla Ventures, Accel, Lightspeed, Baillie Gifford, Peak XV and Rakesh Gangwal, Zetwerk reported gross merchandise value (GMV) of Rs 12,798 crore in FY25, down 11 percent from Rs 14,443 crore a year earlier.
Its net loss narrowed to Rs 371 crore in FY25 from Rs 918 crore in FY24. Co-founder and CEO Amrit Acharya had earlier told Moneycontrol that the company expects to cross $2 billion in revenue in FY26, driven by manufacturing contracts linked to AI data centres.