This round will value the company at around $2.5 billion pre-money, almost double what it was in August this year.
When it raised $150 million from investors $1.33 billion led by D1 Capital Evaluation And this year the unicorns join the growing list, he said.
A person with knowledge of the company’s plans said, “The new funding round is a mix of primary and secondary capital, where some of its existing investors and early backers will exit entirely, thereby redrawing the capitalization table. ”
According to him, the funds are currently doing due diligence and a binding term sheet is expected within a fortnight. He said Zetwerk is likely to close the round by the end of this month.
A company spokesperson declined comment, while emailed questions to spokespersons for Iconic Capital and Greenox Capital remained unanswered as of press time on Wednesday.
Sources said the company may soon turn profitable and will use the money for its global expansion plans, including opportunities for inorganic growth.
Founded in 2018 by Amrit Acharya, Srinath Ramakrishnan, Rahul Sharma and Vishal Choudhary, Zetwerk helps small and medium enterprises translate their digital designs into physical products.
It serves over 25 industry sectors, entering new manufacturing categories such as consumer goods, apparel, defence, space and aerospace.
Currently, about 85% of its business is concentrated around the Indian market and international trade contributes about 10% to its order book.
There are plans to use the new funds to aggressively expand into overseas markets, said one of the sources with direct knowledge of the development.
In August, typesetting was
Raised $150 million in its Series E round Led by D1 Capital Partners and with participation from new investors Avenir and IIFL, along with existing Greenox Capital, Lightspeed Venture Partners, Sequoia Capital and Accel.
Announcing the funding round, its CEO Amrit Acharya had told ET that the company has turned EBITDA positive and is likely to grow 4x in the current fiscal to achieve revenue of around Rs 3,500 crore. Ebitda is earnings before interest, taxes, depreciation and amortization.
In February, typesetting was
Raises $120 million in Series D round From investors led by US-based Greenox Capital and Lightspeed Venture Partners. The company was valued at approximately $600 million in this round.
Zetwork’s revenue tripled to Rs 949 crore for the year ended March 2021. The company narrowed its losses to 2% from 8% of its revenue in FY15, as reported by ET in July this year.
Net cash in use from operations declined to Rs 80 crore from Rs 115 crore in FY15, while the working capital intensity of the business has come down from 35% to 10% of the total business. Acharya then told ET, “We have reduced our burn and are on our way to become profitable in the next 12-15 months.”
The liquidity rush in the Indian and overseas markets has helped many companies to raise a large pool of capital at great valuations.