What's Happening?
Zetwerk, an Indian B2B manufacturing and supply chain platform, reported an 11% decline in gross merchandise value (GMV) for the fiscal year 2025, alongside a net loss of ₹371 crore. Despite the decline in GMV, the company managed to reduce its losses by nearly 60% compared to the previous year, thanks to improved cost controls. Zetwerk's total expenses decreased by about 12% year-on-year due to optimized material sourcing and streamlined procurement processes. The company also reported a positive EBITDA of ₹145 crore, indicating a shift towards operational sustainability. The manufacturing services segment showed strong momentum, driven by demand from sectors such as renewables and heavy engineering.
Why It's Important?
The financial performance of Zetwerk highlights
the challenges faced by the manufacturing sector amid a broader slowdown in industrial and infrastructure-led demand. The company's ability to reduce losses and achieve a positive EBITDA is significant as it indicates improved operational efficiency and cost discipline. This development is crucial for Zetwerk as it positions itself for long-term growth and potential public market entry. The focus on manufacturing services and end-to-end solutions could help Zetwerk reduce its reliance on low-margin trading volumes and enhance its revenue mix, aligning with India's manufacturing growth ambitions.
What's Next?
Zetwerk is reportedly preparing for a potential initial public offering (IPO) in the medium term. The company is aligning its internal processes and financial metrics with public market expectations, focusing on profitability and cash efficiency. With strong cash reserves and a healthy liquidity position, Zetwerk is well-positioned to navigate short-term market volatility and invest in growth initiatives. As industrial demand recovers, the company aims to strengthen its margins and build a more resilient business model.
