Bengaluru-based manufacturing and supply chain unicorn Zetwerk has acquired Lexington, US-based manufacturing services company Unimacts in order to strengthen its international operations with an eye on US clients for solar and wind power. The deal values Unimacts at $39 million
This deal marks the fourth acquisition by Zetwerk in 2022. Earlier in July Zetwerk acquired three Indian companies- Pinaka Aerospace, SharpTank and Wheels India’s fabrication unit, The Wardha. These companies belong to various sectors namely aerospace & defence, oil & gas and fabric solutions respectively.
Zetwerk’s global employee count will reach 1,900 as the entire Unimacts team inclusive of CEO Matthew Arnold, CFO Andrew Woglom, and COO Alan Hays will be joining Zetwerk.
“Partnering with Zetwerk will allow us to accelerate our growth and global reach, and provide more comprehensive solutions to our customers,” Unimact’s CEO Matthew said in a statement issued by Zetwerk
The industries in which Unimacts operates include those for material handling, industrial products, and renewable energy. Its competence in the production of renewable energy sources as well as in the provision of highly specialised mechanical goods, logistical assistance, design for manufacturing, inventory control, and close-to-customer storage will be helpful to Zetwerk. Manufacturers’ struggles with metal manufacturing are also overcome by Unimacts by streamlining the worldwide supply chain.
The acquisition will provide Unimacts access to a substantial off-shore footprint in India and Vietnam as well as the financing it needs to expand its presence in the US, Europe, and Mexico.
“Nearly 10-12% of our revenue comes from international markets, the US being the largest. The purpose of the acquisition is to be closer to customers in the US and to build a leadership team in the country,” said Amrit Acharya, Co-founder and CEO of Zetwerk.
Zetwerk is a business-to-business manufacturing services startup. In 2018, Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary formed the Bengaluru-based business. The organisation links businesses in need of specialised goods and machine parts. The company partners with industrial and consumer enterprises and connects manufacturing companies with vendors and suppliers for customised products, industrial machine components and other equipment.
Zetwerk has reportedly been operationally profitable for about 15 months and valued at $2.7 billion in a fundraising round headed by Greenoaks Capital in December 2021.
As a proxy for the overall amount of goods sold, the company is on track to conclude FY 2023 with $1 billion in gross merchandise value, up from $770 million in FY 2022, according to Amrit. For FY 2022, the corporation generated an operating income of $607 million.
Currently, Zetwerk has a network of more than 10,000 manufacturing partners worldwide and more than 2,000 customers in North America, Asia-Pacific, and the Middle East.