Zetwerk, India’s rapidly growing B2B manufacturing services platform, is preparing to enter the public markets, marking another important milestone in the country’s burgeoning startup ecosystem. According to a recent article titled “Zetwerk IPO on the horizon; ED trouble for Winzo, Gameskraft” published by the Economic Times, the company is working on a draft red herring prospectus, which is expected to be filed with regulators within the next few months. This move points to Zetwerk’s accelerated trajectory and the increasing investor appetite for enterprise-focused technology platforms in India.
Founded in 2018, Zetwerk connects businesses with manufacturing partners for custom-made components across sectors such as aerospace, infrastructure, and consumer goods. The company has so far raised more than $650 million from investors including Greenoaks Capital, Lightspeed, and Sequoia Capital India. Industry insiders suggest that the IPO could value the firm upwards of $2.5 billion, although official figures have yet to be confirmed.
The timing of Zetwerk’s IPO plans aligns with a broader resurgence of public market activity among Indian startups after a subdued 2023 marked by investor caution and tightening liquidity conditions. Its move also reflects a shift in focus from B2C consumer apps, which have historically dominated the Indian digital space, to B2B firms driving industrial and infrastructural efficiencies.
While Zetwerk’s IPO preparations signal optimism, other companies in the tech sector are facing less favorable circumstances. As noted in the same Economic Times report, gaming firms Winzo and Gameskraft are under increased scrutiny from the Enforcement Directorate (ED), the law enforcement agency tasked with investigating financial crimes. The agency is reportedly examining these firms in connection with alleged violations of India’s anti-money laundering laws. Winzo has denied any wrongdoing, asserting that it operates in full compliance with applicable legislation. Gameskraft, which recently won a legal battle at the Karnataka High Court concerning a substantial tax demand, is also expected to contest the ED’s probe vigorously.
The contrasting headlines — one of IPO anticipation and the other of regulatory entanglement — highlight the diverse landscape of India’s digital economy. While enterprise software and B2B solutions are gaining validation on global investment stages, consumer-facing platforms continue to navigate complex regulatory frameworks, particularly in sectors like online gaming that occupy legal grey areas.
As India continues to evolve as a major digital economy, the stories of Zetwerk, Winzo, and Gameskraft underscore the interplay of innovation, regulation, and market readiness. For Zetwerk, a successful IPO could not only bolster its operational capacity but also validate the growing global confidence in India’s industrial tech. For the gaming firms under the ED’s lens, the path forward remains uncertain, revealing the fragile balance between rapid scale and regulatory compliance that startups must manage in today’s environment.
