Indian business-to-business (B2B) marketplace startup Zetwerk has raised $32 million in funding, led by new investors Lightspeed and Greenoaks Capital, reports said on Tuesday (Dec. 10). Existing investors Sequoia India, Accel and Kae Capital also participated in the Series B funding round, as well as B2B marketplace Udaan’s Co-founder Vaibhav Gupta and budget lodging firm OYO’s Chief Strategy Officer Maninder Gulati.
The investment will be used by Zetwerk to scale operations in India. Zetwerk Co-founder and CEO Amrit Acharya told reports that the company also raised about $14.2 million in debt from banks and others. The Bangalore-based startup has raised roughly $41 million to date.
The B2B manufacturing firm was founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary last year. The company connects original equipment manufacturers (OEMs) and engineering procurement construction (EPC) customers with manufacturing small businesses (SMBs) and enterprises.
Zetwerk sells items like crane parts, doors, machine chassis and ladders, as well as services businesses in fabrication, machining, casting and forging. It works with more than 100 enterprises and 1,500 SMBs, and delivers more than 15,000 parts each month.
“These are all custom-made products,” said Acharya. “Nobody has a stock of such inventories. You get the order, you find manufacturers and workshops that make them. Our customers are companies that are in the business of building infrastructure. … We index these small workshops, and understand the kinds of products they have built before. These indexes help bigger companies discover and work with them.”
Zetwerk has also helped manufacturers in India find clients overseas. Manufacturers on the platform export their goods to North America and Southeast Asia. “India has a lot of depth in manufacturing, but much of it has not been tapped well,” said Acharya.
The company raised $9 million in a Series A funding round in March, led by Sequoia Capital India, Accel and Kae Capital. That funding helped Zetwerk expand its supplier base, and develop more solutions for both buyers and suppliers.