business

breaking news Sequoia Backed Unicorn Zetwerk sees six-fold revenue increase, loss unchanged in FY22


By Akil V IST (Released)

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Zetwerk, which connects businesses with manufacturers to turn custom designs into finished products, from nail clippers to aircraft engine components, saw its gross goods value increase sixfold to Rs 5,718 crore in the financial year previous.

B2B manufacturing unicorn Zetwerk recorded a six-fold increase in operating revenue to Rs 4,961 crore in FY22.

The result, however, remains the same from the previous financial year, with a loss of Rs 42 crore due to non-cash employee share ownership plan (ESOP) expenses, according to the startup’s statement.

If these expenses are excluded, operationally, Zetwerk said it recorded its first full year of profitability with a positive EBITDA of Rs 57 crore.

Zetwerk, which connects businesses with manufacturers to turn custom designs into finished products, from nail clippers to aircraft engine components, saw its gross goods value increase sixfold to Rs 5,718 crore in the financial year previous.

As of September 2022, the B2B unicorn has an open order book of Rs 9,750 crore, having secured orders worth Rs 11,200 crore in FY22.

“Most of Zetwerk’s growth is due to increased spending by loyal customers who use Zetwerk’s technology and supply chain to accelerate lead times, improve quality, and gain visibility into their product needs. supply,” the statement said.

Venturing into international markets such as North America and reducing dependence on industrial customers by adding consumer businesses to the portfolio were among two strategic shifts driving Zetwerk’s growth, said added the company.

In FY22, industry segment revenue contributed 70% of total revenue, with the remainder coming from consumer business. In addition, international customers accounted for 16% of turnover.

“Growth-enhancing measures and policy interventions such as production-related incentives have begun to show positive results in attracting investment in highly complex manufacturing areas such as semiconductors and consumer electronics,” the company said.

Over the next 12 months, Zetwerk forecasts strong domestic demand driven by a revival of private capital into new factories and increased exports as countries increasingly opt for the China+1 sourcing strategy, particularly in precision components, electric vehicles, medical devices and renewable energy.

Additionally, the B2B startup foresees Indian companies looking to localize manufacturing and reduce reliance on imports, especially in electronics and aerospace.

The earnings announcement comes at a time when Zetwerk is looking to raise $100-120 million in new funding at a higher valuation, according to a New report. Last December, it raised $210 million at a valuation of $2.7 billion in a funding round led by Greenoaks Capital. Zetwerk became unicorn in August 2021.




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