Zetwerk set for over $1-billion revenue in FY23 on China Plus One

Manufacturing unicorn Zetwerk said it is on track to cross over $1 billion in revenue during the current financial year. At a time when companies are considering the China Plus One strategy, it is turning out to be a big opportunity for Zetwerk, which is a global source of manufacturing across industrial and consumer products.

To strengthen its international operations, Bengaluru-based Zetwerk has acquired US-based manufacturing services company Unimacts at a valuation of $39 million. Unimacts operates within various industries, including industrial products, material handling, and renewable energy segments.

“Our entire US business is built on China Plus One theme. US companies that were buying from China are now looking to explore India,” said Amrit Acharya, co-founder and chief executive officer (CEO) of Zetwerk. 

He said, “About 10-15 per cent of our revenue — that comes from international markets — would not have been possible without this kind of global shift that is happening across the board.”

Acharya said the acquisition of Unimacts will immediately expand Zetwerk’s presence in North America and position it for additional expansion in the coming months. This acquisition comes less than six months after Zetwerk acquired three Indian manufacturing supply chains across aerospace and defence, oil and gas, and railways.

Zetwerk’s acquisition of Unimacts will provide the company with immediate access to marquee solar and wind-power customers. Zetwerk will also gain access to the large-scale consolidated demand Unimacts has generated so far. 

The executive team at Unimacts, including Matthew Arnold, CEO, Andrew Woglom, chief financial officer (CFO), and Alan Hays, chief operating officer (COO), along with the team at Unimacts, will be joining Zetwerk. This will take its global employee count to 1,900.

Arnold said with the recent $1.2-trillion infrastructure Bill and Inflation Reduction Act, the renewable energy sectors of solar and wind in the US are poised for significant growth.

“We strongly believe that joining the Zetwerk family will translate into broader offerings for customers in the US and around the world,” said Arnold. The partnership with Zetwerk will enable Unimacts, with the necessary capital to scale up its presence in the US, Europe and Mexico.

This also includes access to a strong off-shore footprint in India and Vietnam.

Zetwerk’s 2021-2022 financial results showcased strong growth across categories.

The company’s gross merchandise value (GMV) grew six-fold, to $770 million from $130 million. The operating revenue expanded to $670 million from $110 million in 2020-2021.

“With this acquisition in North America, Zetwerk is well-positioned to help even more businesses create self-reliant supply chains in renewable energy and infrastructure,” said Vaibhav Agrawal, partner at Lightspeed Venture Partners and Zetwerk Board member.

Zetwerk has more than 2,000 customers across North America, Asia-Pacific and the Middle East. It has a network of more than 10,000 manufacturing partners worldwide.

In May this year, Zetwerk also commissioned a mega manufacturing facility at Noida in Uttar Pradesh.

The factory has been established to create original design manufacturers (ODMs) in hearables, wearables and Internet of Things (IoT) devices.

Post the supply chain disruptions due to Covid over the last two years, customers are preferring reliability in their supply chains. This is leading to an increased demand for Zetwerk's services. 

Customers use Zetwerk’s technology and supply chain to drive faster lead times, improve quality and visibility in their sourcing requirements.

In September this year, the company said that it has an open order book of Rs 9,750 crore.

In 2020-21, the company had decided to venture into international markets such as North America.

It also added the consumer business to its portfolio in addition to the industrials segment.

These strategic decisions have provided long-term tailwinds for the company’s global growth.

Revenue from the industrials segment was 70 per cent of the total revenue. The consumer segment accounted for 30 per cent. 

In January this year, Zetwerk raised $240 million from investors at a valuation of $2.7 billion, according to the sources.

Growing Base

> Zetwerk has acquired US-based manufacturing services company Unimacts at a valuation of $39 million

> Unimacts operates in industries such as industrial products, material handling, and renewable energy segments

> The buy will expand Zetwerk’s presence in North America and position it for additional expansion in the coming months

> This comes less than six months after Zetwerk acquired three Indian manufacturing supply chains