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Zetwerk raises $150 millionOyo Rooms raises $5 million- China headache for Big Tech
Zetwerk set to turn unicorn with $150-million funding
(From left) Zetwerk cofounders Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary
Zetwerk Manufacturing has raised $150 million in a Series E funding round at a valuation of $1.5 billion, sources told us, making the contract manufacturer the 25th Indian startup to achieve unicorn status this year.
- In industry parlance, unicorns are privately held companies valued $1 billion or more.
Deal details: D1 Capital Partners led the fundraise, which also saw participation of existing investors and partial exit of an early backer, sources told us. “Almost half of the new funds have come from D1 Capital,” sources said.
- The latest capital raise comes six months after Zetwerk raised $120 million in a Series D round at a valuation of $600 million.
- The company has filed the first set of documents with the Registrar of Companies and is likely to submit the rest by next week.
The fresh capital will be used for hiring, tech investment and product expansion.
About Zetwerk: Founded in 2018 by IIT alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Zetwerk helps small and medium enterprises (SMEs) bring their digital designs to life. It currently operates in more than 25 industry segments— from apparel to aerospace.
Financials: In an interview with ETtech in July, CEO Acharya had said that the company’s revenue grew nearly three times over the previous year to Rs 949 crore. He expects the growth momentum to sustain in 2020-21, on the back of a Rs 4,500-crore order book.
- At present, 90% of Zetwerk’s business is concentrated in the Indian market, while overseas operations account for the rest. Acharya expects this mix to change to 75-25 in the next 18-24 months.
Meanwhile, one of India’s biggest unicorns raised funds today.
Oyo founder Ritesh Agarwal
ET was the first to report on a potential Microsoft-Oyo deal on July 30.
Why it matters: The funding comes amid reports that Oyo has started work on its draft IPO prospectus that it aims to file in October. The company, operated by
- “Work has begun and some bankers have been finalised,” sources told us. “They are aiming to file the draft red herring prospectus (DRHP) by September.”
ET had last month reported that Oyo had secured a $660-million debt financing from global institutional investors to service its existing loans. Wall Street investors like Fidelity, Citadel Capital Management and Varde Partners have subscribed to Oyo’s TLB, also referred to as Term B Loan.
China takes next step in taming Big Tech with new data law
China has passed legislation setting out tougher rules for how companies handle user data, a move pushing forward its campaign to curb Big Tech’s influence.
The legislature of the Asian nation approved the Personal Information Protection Law, the China Central Television said in a report.
Details of the new legislation were not immediately released but earlier drafts required firms to get user consent to collect, use and share information, and to provide a way for them to opt out. Companies found breaking the rules could face fines of up to 50 million yuan ($7.7 million) or 5% of their annual revenue.
China under President Xi Jinping has been cracking down on its most powerful tech stars, including Alibaba Group Holding Ltd., Tencent Holdings Ltd and Didi Global Inc. in a bid to ensure its grip on society.
The government is also moving to address consumer worries about the gradual erosion of their privacy as technology companies make rapid advances in the use of tools from facial recognition to big data. (read more)
Tweet of the day
ETtech Deals Digest
Postman became the most valued software-as-a-service firm from India this week, which also saw the creation of another unicorn. (read more)
Facebook India’s loan initiative for SMEs
Facebook India MD Ajit Mohan
Facebook India has launched an initiative to help small businesses that advertise on its platforms get easier access to credit from reputable lenders.
Driving the news: To start with, the social network has partnered Indifi Technologies and will bring on board more lenders to provide collateral-free loans to small businesses on its platforms—Facebook, WhatsApp and Instagram.
To be sure, Facebook said it will maintain an arm’s length distance from these lenders. Its role, the company said, is to set the rules for lenders, which will need to disburse loans within five days of completion of the application process.
- The interest rate is 17-25%. The loan size will be between Rs 5 lakh and Rs 50 lakh.
- Women-led businesses will get a 0.2% reduction in the interest rate applicable.
Quote: “It’s going to be an arm’s length relationship with reputable and reliable lenders, but within the construct of a program that has been co-designed with Facebook,” Facebook India’s Managing Director Ajit Mohan said.
Other Top Stories We Are Covering
A ‘war for talent’: Axtria, which added 800 people to its staff during the pandemic, aims to hire 1,000 more in the next 12-18 months to cater to the spike in demand that the company has seen in the past one year.
“There is a war for talent. There’s always been a lot more demand for talent than the supply, but it has gone to a different level,” Axtria CEO Jaswinder Chadha said.
India vs China, for funding: Indian startups have received $16.9 billion in venture capital so far this year, next only to Chinese counterparts in the Asia-Pacific countries, according to a report.
An analysis of GlobalData’s financial deals database reveals that a total of 828 VC funding deals were announced in India during January-July 2021 while the total disclosed funding value of these deals stood at $16.9 billion.
Offloading stake: SoftBank Group Corp. has sold 11.4 million shares of DoorDash Inc. marketed by Goldman Sachs at $182.95 apiece.
The share sale comes a week after the food delivery startup, in its quarterly earnings report, predicted a seasonal decline in order rates and new customer addition in the current quarter.
Today’s ETtech Top 5 newsletter was curated by Tushar Deep Singh in Mumbai. Graphics and illustrations by Rahul Awasthi.
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