Zetwerk targets ₹25,583 crore valuation in ₹5,012 crore IPO

Peak XV Partners and Accel India-backed Zetwerk Manufacturing Businesses Ltd is seeking a flat valuation of ₹25,583 crore ($3.2 billion) in its initial public offering (IPO), according to its red herring prospectus (RHP) filed on Monday.

The business-to-business platform was valued at ₹27,000 crore post-money in its last funding round in March, including an employee stock ownership plan pool of about ₹1,500 crore.

The company has set a price band of ₹143 to ₹151 a share for the offering, which opens for subscription on 15 October and closes on 19 October. It has increased the size of the IPO to ₹5,012 crore.

The company has raised the fresh issue component to ₹2,830 crore from ₹2,600 crore proposed in its updated draft red herring prospectus (UDRHP) filed in August, and the offer for sale by around 50% to 145 million shares from 97 million shares.

“We just wanted to give more people an opportunity to invest,” co-founder and chief executive Amrit Acharya told Mint.

“IPO valuation is a point in time in our larger journey,” he said, adding that the valuation ensures participation from global shareholders who can stay invested with the company for a long period of time.

Acharya and co-promoter Srinath Ramakkrushnan will each sell 14.2 million shares in the IPO. The promoter group entity, Creovate Innovation, will sell an additional 23 million shares.

Other existing investors, including Lightspeed Venture Partners and Peak XV Partners, will also sell over 20 million shares each.

Kae Capital, Kalysta Capital and Accel India will collectively sell close to 30 million shares.

From the fresh proceeds, Zetwerk will use ₹2,160 crore for paring debt. The remaining will be allocated towards inorganic growth opportunities and general corporate purposes.

"The idea is to de-leverage the balance sheet and increase the net worth of the company," Acharya said.

Rather than pursuing speculative white spaces, post-IPO growth will double down on existing strategy, Acharya told Mint.

“Today, 85-90% of our revenue comes from our repeat customers, who, on average, are spending 130% more than what they had spent the year before,” he said. “When your business is so much repeat-driven, it's easier to have peace of mind as a management team and just double down on what is working.”

On the financial front, Zetwerk posted a net loss of ₹733 crore for the June quarter, narrowing from ₹1,368 crore in the year-ago period. Revenue increased 55% year-on-year to ₹4,118 crore from ₹2,649 crore.

For fiscal year 2025-26 (FY26), the Bengaluru-based company reported a 40% rise in top line to ₹15,913 crore from ₹11,332 crore on-year. Net loss for the fiscal year jumped to ₹1,606 crore from ₹371 crore a year ago.

Acharya, however, expects profitability to improve as the company's scale of operations increases.

“Scale and profitability in our business go hand in hand,” he said, while adding that margin improvement is a metric that is also improving.

“Our operating margin is around 2.5-3%. In FY24, it was around 1%,” he said. “In that two-year time period, our revenue has grown by roughly 40%. Our operating profit has grown fourfold.”

The IPO comes at a time when Zetwerk has fully written off and discontinued its non-core civil infrastructure business.

Acharya said the company is actively seeking buyers for this business, though details on the final valuation or sale consideration are still being determined.

For the June-end period, the civil infrastructure business had assets worth ₹810 crore held for sale and liabilities worth ₹1,347 crore.

The IPO opens for retail subscription from 15 October to 19 October 2026. Mint reported on 10 October that a clutch of investors, including Abu Dhabi Investment Authority (ADIA), Norway's central bank, and the asset management arms of Goldman Sachs, State Bank of India and HDFC, are among more than 30 foreign and domestic investors considering participation in Zetwerk's anchor book ahead of its IPO.

Agnidev is a business journalist with over two years of reporting experience tracking the intersection of capital, policy, and corporate strategy in India.<br><br>He joined Mint in December 2025, after a stint at NDTV Profit (erstwhile BQ Prime). At Mint, Agnidev focuses on the high-stakes world of the Indian capital market, specialising in mergers and acquisitions, burgeoning IPOs, and the investment banking industry.<br><br>Backed by a rigorous, data-driven approach, Agnidev frequently breaks news on the valuation cycles, deal pipelines and listing strategies of India’s most prominent companies. His reportage offers deep dives into the operational health of market leaders across the corporate landscape, providing readers with a clear-eyed view of institutional growth.<br><br>He has reported on major issues like India's derivatives frenzy, IPO froth, the competitive quick commerce industry, the real-money gaming ban, and has broken investigative stories related to scandals such as IndusInd Bank's accounting manipulation and the Gensol-BluSmart fiasco.<br><br>As a reporter, he brings stories that ultimately affect your stock market investments, and tries to bring clarity and brevity in a field that is often filled with jargon and noise.

Priyamvada is a Mumbai-based business journalist at Mint. She writes about the public and private markets with a key focus on venture capital, private equity, M&As and private credit. Her coverage also spans startups and emerging businesses.<br><br>Over the last two years, she has uncovered some of the largest deals and interviewed important decision-makers from India’s investment ecosystem. She likes to dabble across different formats like long forms and explainers. Her work has been consistently displayed on the publication's deals page, and she has also written multiple front-page stories.<br><br>Prior to joining Mint in 2024, she worked out of Reuters’ Bengaluru bureau where she extensively covered the travel, transportation, and logistics industries. Across both her stints, Priyamvada has displayed rigour for breaking news and analyzing interesting data-driven trends. She holds a postgraduate diploma from the Asian College of Journalism's Bloomberg programme. In her free time, she enjoys reading books and trying out different cuisines. She is keen to delve deeper into the various sectors she covers and is always up for a chat. You can reach out to her at priyamvada.c@livemint.com.

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