Zetwerk Reports 82% Increase In Losses, Primarily Driven By ESOP: FY23 Results


Contract manufacturing company Zetwerk recorded an 82 per cent surge in losses for fiscal year 2023 (FY23) at Rs 108.7 crore from Rs 59.76 crore in the previous fiscal year on a consolidated basis. Moreover, its revenue from operations grew by nearly 130 per cent to Rs 11,448.6 crore during the year, whereas the income jumped to Rs 11,595.6 crore for the year.

Company’s expenses rose by 130 per cent as well to Rs 11,712.62 crore on the back of rising employee expenses, finance costs and other expenses.

The numbers represent the total for 19 entities, including 17 subsidiaries and two jointly controlled entities.

In a statement sent to BW Businessworld after publishing the story, a Zetwerk representative stated that the reported losses are primarily attributed to one-time ESOP (Employee Stock Ownership Plan) expenses. “It’s important to note that the company maintains a positive EBITDA on an operational basis,” the statement added.

Besides its branch in India, Zetwerk also operates in Singapore, the US, and the Middle East. In 2022, the company made four acquisitions.

Zetwerk has recently secured USD 120 million in a Series F funding round led by Avenir Growth Capital, with participation from Lightspeed, Green Oaks Capital and Steadview Capital, among others. Its valuation remains at USD 2.7 billion, with a total funding of USD 764 million.

Established in 2018 by Amrit Acharya, Srinath Ramakkrsuhnan, Vishal Chaudhary, and Rahul Sharma, Zetwerk provides a managed marketplace for contract manufacturing to industrial and consumer enterprises. It caters to various industries such as oil and gas, renewables, aerospace, infrastructure, apparel, electronics, retail, solar and renewable energy. Recent reports suggest that the company plans to invest Rs 1,000 crore in the consumer electronics space, including electric vehicles and IT hardware.

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