Zetwerk Files UDRHP For ₹2,600 Cr IPO

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Months after the markets regulator cleared its confidential IPO filing, B2B manufacturing startup Zetwerk has now filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). As per its UDRHP, Zetwerk’s public issue comprises a fresh issue of shares worth ₹2,600 Cr and an offer-for-sale (OFS) component of up to 9.6 Cr equity shares. The OFS component will see early backers, including Peak XV Partners, Lightspeed Venture Partners, Kae Capital, among others offload parts of their stake in the contract manufacturer. The startup’s promoters Amrit Acharya and Srinath Ramakkrushnan will also sell 1.4 Cr equity shares each. The startup will utilise almost 69% of its fresh issue, around ₹1,800 Cr, to repay or prepay certain borrowings. A chunk of the IPO proceeds will also be utilised to undertake acquisitions and for general corporate purposes. This comes a few weeks after the manufacturing unicorn raised ₹500 Cr in a pre-IPO funding round from Bharat Value Fund. It is pertinent to note that Zetwerk filed its DRHP with SEBI via the confidential pre-filing route in March this year. It subsequently received the markets regulator’s nod to float its public issue in July. Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Zetwerk operates a full-stack manufacturing platform catering to clients across sectors such as industrial components, electronics, renewable energy equipment and consumer hardware. The startup follows a B2B contract manufacturing model, wherein enterprise customers provide product designs while Zetwerk manages vendor selection, procurement, production, quality control, logistics and delivery through its manufacturing partner network. As of March 2026, Zetwerk claims to operate more than 26 manufacturing facilities across India, the US, Germany and Spain. The startup entered the unicorn club in 2021 after raising $150 Mn. To date, it has raised more than $700 Mn in funding from investors including Peak XV Partners, Lightspeed, and Mars Growth Capital. On the financial front, Zetwerk revenue from operations zoomed over 40% to ₹15,913.3 Cr in FY26 from ₹11,300 Cr in the previous fiscal year. Of this, approximately ₹9,300 Cr came from manufacturing, while the remainder from its ecosystem/raw-material business. The manufacturing giant also saw its net loss climb 333% to ₹1,606.1 Cr during the fiscal under review from ₹370.7 Cr in FY25. The unicorn’s loss deepened largely due to a ₹450 Cr provision related to the discontinued civil infrastructure business and around ₹800 Cr accounting charge related to the founders increasing their ownership from 15% to about 20%.

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