New Delhi, May 20 -- Bengaluru-based business-to-business manufacturing marketplace Zetwerk, which filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) through the confidential route in March, recorded a sharp rebound in revenue in the financial year through March 2026, VCCircle has learnt.
The company, backed by Khosla Ventures, IndiGo co-founder Rakesh Gangwal and Baillie Gifford, saw revenue from continuing businesses rise to around Rs 15,900 crore in FY26 from Rs 12,800 crore a year earlier, according to documents reviewed by VCCircle.
The company's consolidated revenue for FY25 had slipped about 11% from Rs 14,443.5 crore in FY24, according to VCCEdge. However, its net loss narrowed to Rs 309.5 crore in FY25 from a loss of Rs 815 crore the year before. VCCircle couldn't immediately ascertain whether the company logged a loss or turned a profit for FY26.
An email sent to Zetwerk remained unanswered till the time of publishing.
The rebound was driven by strong execution across core business segments, expansion into product-led verticals and rising international demand, even as the company navigates pressure from its infrastructure business and higher leverage.
The rebound comes after the company scaled down exposure to low-margin and non-core operations, particularly within the civil infrastructure segment.
Zetwerk currently operates across energy, precision manufacturing, capital goods and ecosystem or trading businesses. The company has increasingly focussed on shifting from project-oriented operations toward product-led manufacturing segments that offer better visibility and margins.
The company's order book stood at more than Rs 12,000 crore as of March 2026 and is expected to be executed over the next 12-18 months, VCCircle has learnt.
Zetwerk has also expanded its global footprint over the past few years and now derives part of its revenue from customers across the US, Europe, Southeast Asia and the Middle East.
Its customer base includes companies such as NTPC Renewables Energy Ltd, Samsung India Electronics Pvt Ltd, NALCO and ArcelorMittal Nippon Steel India. The top 10 customers contributed only around 30% of total revenue during FY26, reflecting a diversified business mix.
Founded in 2017 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Rahul Sharma and Ankit Fatehpuria, Zetwerk is backed by investors including Greenoaks, Lightspeed, Accel, Kae Capital, D1 Capital, Avenir Growth, Peak XV Partners,
During FY26, it infused around Rs 1,100 crore in equity into the business, including nearly Rs 600 crore from promoters, primarily founders Acharya and Ramakkrushnan.
However, the company continues to face pressure on profitability and leverage.
Zetwerk has also pursued aggressive inorganic expansion to strengthen capabilities across newer verticals. It has acquired nine companies and joint ventures so far as part of its strategy to deepen manufacturing capabilities and expand customer access. However, it also assumed the debt of these companies, which led to a rise in the overall debt at group level.
Debt levels are estimated to have risen to around Rs 2,700-2,800 crore as of March 2026 amid higher working capital requirements and acquisitions. Meanwhile, the firm's operating margins are expected to remain subdued at around 2.6%.
The civil EPC business is also expected to incur sizable losses during FY26, VCCircle has learnt. The company is understood to be gradually exiting the segment over the next 12-18 months as it sharpens focus on core manufacturing-led verticals.
For its planned IPO, Zetwerk is targeting a valuation of around $4 billion. It aims to raise $550-600 million, largely via an offer-for-sale component. Kotak is leading the IPO mandate alongside Morgan Stanley, Goldman Sachs, HSBC, JM Financial, Avendus and Pantomath.
Published by HT Digital Content Services with permission from VC Circle.