Business to Business (B2B) manufacturing service unicorn Zetwerk has acquired a US-based industrial manufacturing company with gross volume of 39 million dollars and plans to record more than 1 billion dollars in revenue for the fiscal year ending in 2023.
"Last year, about 12 percent of our revenue came from the non-Indian market, which is mostly from the US. Because of the acquisition, we want to be closer to our customers in the US.
Zetwerk's focus on the US market is also due to the recent introduction in the country of the Inflation Reduction Act of 2022 and the US Infrastructure Act, which is similar to the PLI scheme of India stimulating US Businesses and Industries
Acharya also said that with this acquisition, Zetwerk will build a great team including hiring managers and departments in the US, and plans to invest more in the growing renewable energy sector.
"We want to invest more in the US market on top of this acquisition and that will also lead to additional operating numbers within the company," he said. The general takeover of the company would be around 1900.
In 2022, Zetwerk acquired three Indian manufacturing chains in the Aerospace & Defense, Oil & Gas and Railway sectors, which are Pinaka Aerospace, Sharptanks and Wheels India.
The acquisition of Zetwerk Ratings Unimacts will be the company's first international acquisition and will position the company for further expansion and diversification, providing immediate access to wind and solar customers.
Along with the Unimacts team, the company said in a press release that the Unimacts executive team, which includes Matthew Arnold, CEO, Andrew Woollum, CFO and Alan Hayes, will join Zetwerk.
For Unicorns, this acquisition will provide the company with the necessary capital to grow its presence in the United States, Europe, and Mexico, along with access to a strong overseas presence in India and Vietnam. In general, UnimActs' relationships with customers, supplier partners and business operations will not be affected, according to the statement.
Zetwerk's financial results for 2021-2022 showed gross merchandise value increased six-fold, from 130 million dollars to 770 million dollars, and increased operating income from 110 million dollars to 670 million dollars in 2020-2021.
Acharya said the company is on track to earn more than 1 billion dollar in revenue in the current fiscal year and may go public in the future when market conditions are favourable.
"We have capitulated well and expect to post 1 billion dolla in revenue for fiscal year 23. We are even considering going public, but we don't have a specific timeline," Acharya said.
Zetwerk has more than 2,000 customers in North America, Asia Pacific and the Middle East, and a network of more than 10,000 manufacturing partners around the world.
In 2020-21, the company has also decided to diversify its services beyond India and venture into international markets such as North America. It also added a consumer business to its portfolio in addition to the industrial sector.
"Many Indian brands source their electronics from China and other countries and that is changing rapidly...There are a lot of incentives in this as well. We are very committed to this industry and the long-term trends are very favorable." ”
Founded in 2018 by Amrit Acharya, Paraman Ramkrushnan, Rahul Sharma, Srinath Ramkrushnan, and Vishal Chaudhary, the company has raised 554 million dollars in funding to date. The company counts Lightspeed, Cred founder Kunal Shah, and Oyo Ritesh Aggarwal as its supporters.
In August 2021, Zetwerk raised about 150 million dollars in funding from D1 Capital Partners and became a rhino with a valuation of 1.3 billion dollars.
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