Zetwerk, a Bangalore-based B2B marketplace for manufacturing items, has raised $120 million in a funding round led by Greenoaks Capital. The funding round also saw participation from existing investors such as Sequoia Capital, Accel, and Kae Capital, among others. With this latest funding round, Zetwerk’s valuation has reportedly crossed the $600 million mark.
Zetwerk was founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary. The company offers a platform that connects businesses with suppliers and manufacturers for the production of custom-made items. Zetwerk’s platform streamlines the procurement process by providing businesses with access to a network of verified suppliers and manufacturers, enabling them to source high-quality products at competitive prices.
The Growing Demand for B2B Marketplaces
The rise of B2B marketplaces has been driven by the growing demand for more efficient and cost-effective procurement processes. Traditional procurement methods can be time-consuming and expensive, involving multiple intermediaries and negotiations. B2B marketplaces like Zetwerk offer a more streamlined approach, providing businesses with access to a wide range of suppliers and manufacturers in one place.
According to a report by Grand View Research, the global B2B e-commerce market is expected to reach $20.9 trillion by 2027, driven by the increasing adoption of digital technologies and the growing demand for more efficient procurement processes. B2B marketplaces like Zetwerk are well-positioned to capitalize on this trend, offering businesses a more efficient and cost-effective way to source custom-made items.
Zetwerk’s Growth Trajectory
Zetwerk has seen rapid growth since its founding in 2018. The company has reportedly grown its revenue by 4x in the last year, with over 1500 suppliers and manufacturers on its platform. Zetwerk’s platform caters to a wide range of industries, including aerospace, automotive, construction, and oil and gas, among others.
Zetwerk has also expanded its operations beyond India, with a presence in Southeast Asia and the Middle East. The company plans to use the latest funding round to further expand its operations globally and invest in technology and talent.
The Importance of Technology in B2B Marketplaces
Technology plays a crucial role in the success of B2B marketplaces like Zetwerk. The use of digital technologies such as AI and machine learning can help streamline the procurement process, enabling businesses to source products more efficiently and at lower costs. Zetwerk’s platform uses AI-powered algorithms to match businesses with the most suitable suppliers and manufacturers based on their requirements.
In addition to AI, Zetwerk is also investing in other technologies such as blockchain to enhance the security and transparency of its platform. Blockchain technology can help ensure that transactions are secure and tamper-proof, providing businesses with greater confidence in the procurement process.
Conclusion
Zetwerk’s latest funding round is a testament to the growing demand for B2B marketplaces that offer more efficient and cost-effective procurement processes. With its platform connecting businesses with verified suppliers and manufacturers, Zetwerk is well-positioned to capitalize on the growing trend towards digital procurement.
The company’s focus on technology, including AI and blockchain, is also a key factor in its success. As Zetwerk continues to expand its operations globally, it will be interesting to see how it leverages these technologies to further streamline the procurement process and drive growth.