Bengaluru-based contract manufacturing platform Zetwerk has announced its fourth acquisition with Lexington, US-based Unimacts.
According to Amrit Acharya, co-founder and CEO of Zetwerk, Unimacts is valued at $39 million in cash and equity. Unimacts is a contract manufacturing and supply chain solutions company focused on renewable energy, in addition to construction machinery and industrial products.
Zetwerk expects the Unimacts acquisition to help it gain access to solar and wind customers in the US, the company’s largest international market.
Founded in 2018 by Amrit, Srinath Ramakkrushnan, Vishal Chaudhary and Rahul Sharma, the company is on track to end fiscal 2023 with $1 billion in gross merchandise value, a proxy for the total value of goods sold, up from $770 million in fiscal 2022, Amrit said. The company reported operating revenue of $607 million for fiscal 2022.
Amrit Acharya, co-founder and CEO of Zetwerk, said, “Nearly 10-12% of our revenue comes from international markets, the largest of which is the US. The purpose of the acquisition is to be closer to customers in the US and to build a leadership team in the country and said that solar power accounts for nearly 80% of the demand for Zetwerk’s renewable energy sector generation capacity.
He added, “Zetwerk also commissioned a factory in Noida in May to manufacture wearables, IoT and hearable devices. In situations where there is no supply in the country, we are open to catalyzing the process and owning that part of the supply chain. We can’t do this in all major markets.”
Matthew of Unimacts in a statement released by Zetwerk, said, “Partnering with Zetwerk will allow us to accelerate our growth and global reach and provide our customers with a more comprehensive solution.”
The Unimacts executive team, including CEO Matthew Arnold, CFO Andrew Woglom and COO Alan Hays, will join Zetwerk along with the rest of the 200-strong team. This will bring Zetwerk’s workforce to approximately 1,900 worldwide.
Earlier this year, Zetwerk announced the acquisition of three companies for a cumulative value of Rs 100 crore. The acquisitions included aerospace and defense manufacturer Pinaka Aerospace Solutions, oil and gas manufacturer SharpTanks and Wheels India’s The Wardha manufacturing unit, which produces critical manufactured parts for the power, road and rail industries.
Zetwerk, which was valued at $2.7 billion in a funding round led by Greenoaks Capital in December 2021, has been EBITDA, or operationally profitable, for nearly 15 months, according to the company.