Zetwerk’s GMV slips 11% in FY25; posts Rs 371 Cr loss

B2B e-commerce unicorn Zetwerk, which is reportedly preparing to file for an initial public offering (IPO), saw its revenue decline in FY25. Despite the slowdown in the top line, the company managed to reduce its losses during the same period.

Zetwerk’s gross revenue fell 11% to Rs 12,798 crore in FY25 from Rs 14,443 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies (RoC).

Zetwerk is a B2B manufacturing and construction marketplace. The company derives its revenue primarily from trading activities, manufacturing services, and construction and project contracts. Revenue from trading activities, which accounted for 58% of the income, declined 20% to Rs 7,706 crore in FY25.

In contrast, revenue from manufacturing services grew 33.5% to Rs 2,682 crore. Income from construction and project contracts slipped 19% to Rs 2,242 crore, while other income stood at Rs 535 crore in FY25. Including non-operating income, Zetwerk’s total income stood at Rs 12,981 crore in FY25, compared to Rs 14,612 crore in FY24.

On the expense side, the cost of materials accounted for over 85% of the total expense. This cost declined 17% to Rs 11,232 crore in FY25 from Rs 13,467 crore in FY24. Employee benefit expenses, however, rose 12% to Rs 517 crore, while subcontracting expenses increased 16% to Rs 250 crore. Finance costs remained largely flat at Rs 450 crore, and other expenses added another Rs 670 crore during the year.

Overall, Zetwerk reduced its total expenses by 12% to Rs 13,196 crore in FY25 from Rs 15,001 crore in FY24. As a result, its expense-to-revenue ratio improved marginally to 1.03 from 1.04 a year earlier.

With GMV declining, procurement costs came down accordingly, and coupled with a sharp drop in exceptional items, the company reduced its losses by 60% to Rs 371 crore in FY25 from Rs 918 crore in FY24. However, the company posted a positive EBITDA of Rs 145 crore in the same period. Its ROCE and EBITDA margin improved to -0.68% and 1.13% respectively.  

On the balance sheet front, Zetwerk’s cash and bank balances rose sharply to Rs 1,908 crore in FY25 from Rs 1,150 crore a year earlier. The company reported current assets worth Rs 7,840 crore in the same period.

According to TheKredible, Zetwerk has raised a total of $889 million of funding till date, having Greenoaks, Peak XV Partners, Lightspeed Venture Partners and Accel as its lead investors. In April last year, Zetwerk had indicated that it was targeting a public listing within a 12 to 24 month period.

The company is expected to file its draft prospectus this year through the confidential route for its $750 million IPO, which would be among the larger public market debuts by an India-based manufacturing company.