Most IPO stories are about founders cashing out. Zetwerk’s is about paying off debt first. The Bengaluru-based contract manufacturing startup has filed its updated draft red herring prospectus (UDRHP) with SEBI for a public issue of up to Rs 2,600 crore, and almost 69% of the fresh money will go into repaying borrowings.
The offer comprises a fresh issue of shares worth Rs 2,600 crore (around $272 Mn) and an offer-for-sale (OFS) component of up to 9.6 crore equity shares. Early backers including Peak XV Partners, Lightspeed Venture Partners and Kae Capital will offload part of their stakes in the OFS.
Rs 1,800 crore to repay debt
The startup will use around Rs 1,800 crore, nearly 69% of the fresh issue, to repay or prepay certain borrowings. A chunk of the proceeds will also go toward acquisitions and general corporate purposes.
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The company’s promoters, Amrit Acharya and Srinath Ramakkrushnan, will each sell 1.4 crore equity shares in the offer. This comes a few weeks after Zetwerk raised Rs 500 crore in a pre-IPO round from Bharat Value Fund.
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From confidential filing to UDRHP
Zetwerk first filed its DRHP with SEBI through the confidential pre-filing route in March this year. The markets regulator cleared the public issue in July, and the company has now filed the updated draft.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan and Vishal Chaudhary, Zetwerk runs a full-stack manufacturing platform for industrial components, electronics, renewable energy equipment and consumer hardware. Enterprise customers share product designs, while Zetwerk manages vendor selection, procurement, production, quality control, logistics and delivery through its partner network.
Revenue crosses Rs 15,900 crore
Zetwerk’s revenue from operations zoomed over 40% to Rs 15,913.3 crore in FY26, from Rs 11,300 crore the previous year. Around Rs 9,300 crore came from manufacturing, with the rest from its ecosystem and raw-material business.
Net loss, however, climbed 333% to Rs 1,606.1 crore during the fiscal, from Rs 370.7 crore in FY25. The loss widened largely due to a Rs 450 crore provision tied to the discontinued civil infrastructure business and a Rs 800 crore accounting charge linked to founders increasing their ownership from 15% to about 20%.
What lies ahead
As of March 2026, Zetwerk operates more than 26 manufacturing facilities across India, the US, Germany and Spain. The company entered the unicorn club in 2021 after raising $150 Mn, and has raised more than $700 Mn to date.
The IPO marks a turning point for the manufacturing startup, which has built a rare B2B play in a market obsessed with consumer apps. If the listing goes through, Zetwerk will be one of the biggest manufacturing IPOs from the Indian startup ecosystem.