Highlights
Zetwerk Expands Employee Stock Option Plan
Bengaluru-based business-to-business (B2B) e-commerce unicorn Zetwerk has launched a significant employee stock option plan (ESOP) totalling Rs 541 crore (approximately $64 million) as part of its ESOP Plan 2018. This marks the first expansion of their ESOP offerings in the current calendar year.
Details of the ESOP Expansion
The board has officially approved amendments to Zetwerk’s Employee Stock Option Plan 2018, introducing an additional 12,503,900 stock options, as revealed in a regulatory filing accessed from the Registrar of Companies.
- Each ESOP option will convert into equity shares.
- Based on estimates from Startup Superb, the new ESOP options are valued at approximately Rs 541 crore (around $64 million).
With this addition, the overall value of Zetwerk’s ESOP plan has reached Rs 1,145 crore (around $136 million), encompassing a total of 26,464,418 employee stock options. This signifies a substantial 90% increase in the company’s ESOP pool.
Recent Fundraising Activities
This expansion follows Zetwerk’s recent fundraising of $90 million, led by Khosla Ventures and supported by The Schiehallion Fund, which valued the company at $3.1 billion. This information was exclusively reported by Startup Superb earlier this month.
About Zetwerk
Founded by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, Zetwerk is a three-year-old company that facilitates connections between buyers and suppliers for manufacturing opportunities. The firm collaborates with offline suppliers engaged in various processes, including:
- Fabrication
- Machining
- Casting
- Forging
- Galvanizing of machine parts
Financial Performance
According to a company press release, Zetwerk’s gross revenue rose by 53%, reaching Rs 17,564 crore in FY24, up from Rs 11,448 crore in FY23. However, details regarding the net profit for the last fiscal year (FY24) have not been disclosed.
Competitive Landscape and Future Plans
In the B2B e-commerce arena, Zetwerk faces competition from firms such as Infra.Market, OfBusiness, and Moglix. Moreover, media reports suggest that Zetwerk is gearing up for an initial public offering (IPO) to raise $1 billion and has initiated discussions with investment bankers.