B2B firm Zetwerk eyes Rs 500 crore pre-IPO round at $3 billion valuation

Business-to-business manufacturing marketplace Zetwerk is in discussions to secure about Rs 500 crore in pre-initial public offering (IPO) funding from Bharat Value Fund, along with participation from a group of high net worth individuals (HNIs), according to people with knowledge of the development.

The proposed round is expected to value the company at Rs 25,000-26,000 crore (about $3 billion), about the same as its previous valuation, signalling cautious investor sentiment ahead of its planned public market debut.

Zetwerk is also preparing to confidentially file draft IPO papers with the Securities and Exchange Board of India (Sebi), as per people familiar with the matter. The public issue size is expected to be about Rs 5,000 crore, including about Rs 2,700-2,800 crore in fresh capital, with the remaining component likely through an offer for sale (OFS).

Bharat Value Fund, an alternative investment fund (AIF), is focused on late-stage and pre-IPO opportunities and is managed by financial services group Pantomath.

The development comes at a time when new-age IPOs are facing pricing pressure as public market investors demand sharper discounts to private valuations, especially for loss-making companies.

Also Read: Why new-age IPOs are seeing shrinking issue sizes, slashed valuations

PhonePe pushed back its $1.3 billion IPO earlier this month amid volatile market conditions and a valuation gap with mutual fund investors, ET reported on March 16. The Walmart-owned company had received investor interest at about $7 billion, around 50% lower than its last ascribed valuation, according to people in the know.

Companies such as Zepto, Oyo, Flipkart, Razorpay, Infra Market and Acko are evaluating IPOs in the next 12-15 months. While Zepto has filed confidentially to raise up to Rs 11,000 crore in fresh capital from the public markets, hotel aggregator startup Oyo’s parent company Prism has filed to raise Rs 6,650 crore in primary capital via an IPO.

“We have no comments to offer regarding our capital raising plans,” said a Zetwerk spokesperson.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Zetwerk operates a managed marketplace connecting enterprise buyers with manufacturing suppliers across sectors such as industrial machinery, electronics, renewables and aerospace.

For its IPO, Zetwerk has appointed Kotak Mahindra, Goldman Sachs, Pantomath Investment Banking, Morgan Stanley, HSBC and JM Financial as merchant bankers.

In July 2025, the Bengaluru-based company saw its founders Acharya and Ramakkrushnan invest Rs 600 crore after raising personal debt in a transaction that increased their combined stake in the company by 2 percentage points. Prior to this, in December 2024, Zetwerk had raised $70 million in a round led by Khosla Ventures, Rakesh Gangwal, founder of India’s largest airline IndiGo, and UK-based Baillie Gifford. The round valued the manufacturing firm at $3 billion, up from $2.7 billion in 2023.

For 2024-25, Zetwerk reported an 11% drop in its operating revenue to Rs 12,798 crore, while its net loss narrowed to Rs 371 crore against Rs 918 crore in the previous fiscal. In April last year, Zetwerk CEO Acharya had written to the company’s employees emphasising on the need to improve productivity, cut inefficiencies and make sure every unit is profitable.

In February this year, Zetwerk saw its electronics business head Josh Foulger, a former senior Foxconn executive, leave the company to join rival Dixon Technologies. Noida-based Dixon Technologies had reported consolidated operating revenue of Rs 38,860 crore for 2024-25 with a net profit of Rs 1,233 crore. It currently has a market capitalisation of more than Rs 60,000 crore.