Zetwork reports 6-fold rise in revenue to Rs 4,961 crore; loss at Rs 42 crore

23 Sep 2022 , 07:41 AM

Zetwerk, a unicorn in the manufacturing services industry, reported on Thursday that its revenue increased six-fold, from Rs835 crore in FY21 to Rs4,961 crore in FY22.

After accounting for a non-cash employee stock ownership plan (Esop) expenditure, overall losses remained almost identical at Rs42 crore.

Zetwerk recorded an overall loss for FY21 of Rs41.2 crore.

According to co-founder and chief executive Amrit Acharya, the revenue boost was brought on by revenue growth in its consumer manufacturing division and from its overseas clientele.

Currently, consumer manufacturing revenue makes up 30% of Zetwerk’s total revenue, with overseas operations contributing 16% of that total.

Additionally, the US market accounts for nearly 70% of the company’s worldwide sales.

The start-up unicorn reported Rs57 crore in operational earnings before interest, taxes, depreciation, and amortization (EBITDA).

Zetwerk is a controlled marketplace for contract manufacturing that was established in 2018. The business collaborates with commercial and consumer businesses to manufacture goods through a global network of small producers.

According to Acharya, the main trend is still that Indian companies want to localize their manufacturing to India. Global manufacturers are also seeing India as a potential location for their manufacturing setup to diversify away from places like China, he told ET.

The government launched the Production-linked Incentive (PLI) scheme in 2021 with a budget of Rs2 lakh crore for 14 industries, including white goods, specialty steel, automobiles, and auto components.

Zetwerk’s top three manufacturing sectors continue to be cement, metals, and renewable energy.

Zetwerk has an open order book totalling Rs9,750 crore that will be completed in FY23 and FY24 as of September.

Although Acharya declined to disclose the precise investment amount for the development, the company intends to use its money to increase manufacturing capacity through captive facilities.

Zetwerk raised $210 million in December 2021 as part of its third significant equity financing, which was spearheaded by Greenoaks Capital and valued the business at $2.7 billion.

To boost its vertical operations in the oil and gas, aerospace, defence, and infrastructure component categories, the company announced in June of this year that it had paid Rs100 crore for the acquisition of three companies.

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