Bengaluru-based contract manufacturing company Zetwerk has filed draft IPO papers via the confidential route to raise ₹4,200 crore ($450 million). The company is simultaneously in discussions to secure approximately ₹500 crore in pre-IPO funding from Bharat Value Fund, an alternative investment fund managed by financial services group Pantomath, along with participation from a group of high net worth individuals (HNIs). The proposed round is expected to value the company at ₹25,000-26,000 crore (approximately $3 billion), representing the same valuation as its previous funding round. The planned public issue is expected to be approximately ₹5,000 crore, including about ₹2,700-2,800 crore in fresh capital, with the remaining component likely through an offer for sale (OFS). The confidential filing route, introduced by SEBI in November 2022, allows companies to submit IPO documents privately to protect sensitive information, including financials. Other companies that have preferred this route include Tata Play, Vishal Mega Mart, Swiggy, OYO, and Indira IVF.
According to data from Tracxn, Zetwerk has raised a total equity funding of $889 million to date and is currently valued at around ₹10,500 crore (post-money). The company reported revenue of ₹12,798 crore for FY25, representing an 11% drop from the previous year's ₹14,443 crore, while net losses narrowed to ₹371 crore against ₹918 crore in the previous fiscal. This represents significant improvement in the company's financial trajectory ahead of its potential public listing. In July 2025, the company's founders Acharya and Ramakkrushnan invested ₹600 crore after raising personal debt, increasing their combined stake by 2 percentage points. The company has raised funds from investors including Greenoaks, Peak XV Partners, Lightspeed, and Accel. Despite the revenue decline, the company aims for over $2 billion in future revenue, demonstrating confidence in its growth prospects.
A significant concern has emerged regarding Zetwerk's vendor payment practices, with a ₹1.5 crore payment reportedly pending for over two years. According to LinkedIn reports, multiple follow-ups have been made through emails across departments, direct communication with senior management, and formal legal notices sent multiple times, with no concrete response or resolution from the company's side. This issue reflects broader concerns about business ethics and vendor treatment standards, which could impact the company's public market reception despite its improved financial metrics.
As part of its expansion, Zetwerk recently set up a defence electronics manufacturing facility in Devanahalli, Bengaluru, with an investment of ₹100 crore. The 100,000 sq ft facility is equipped with state-of-the-art SMT and FATP lines, catering to the defence and automotive sectors, and is expected to generate around 1,200 jobs. This strategic move positions the company in India's growing defence manufacturing sector.
Founded in May 2018 by IIT graduates Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Rahul Sharma, and Ankit Fatehpuria, Zetwerk operates as a global contract manufacturing platform serving sectors including consumer electronics, aerospace, and industrials. In February this year, the company's electronics business head Josh Foulger, a former senior Foxconn executive, left to join rival Dixon Technologies, which reported consolidated operating revenue of ₹38,860 crore for 2024-25 with a net profit of ₹1,233 crore and currently has a market capitalisation of more than ₹60,000 crore. The company's transformation from a marketplace to a comprehensive manufacturing solutions provider demonstrates its strategic growth trajectory in the contract manufacturing industry.
