Zetwerk Acquires Majority Stake in Kryfs Power Components

Full-stack manufacturing services platform Zetwerk is set to acquire a majority share in Mumbai-based Kryfs Power Components, a manufacturer of transformer cores and electrical steel products, based on regulatory filings examined by Startup Superb. According to the filings, Zetwerk will buy a 51% stake in Kryfs through a stock deal.

The board at Zetwerk has approved a resolution to issue 2.56 crore preference shares valued at Rs 238 crore to Kryfs’s shareholders: Saifuddin Fakhruddin Qureishi, Rauzat Saifuddin Qureishi, and Aalliyah Qureishi, as part of this agreement. It is significant to note that there is uncertainty regarding whether the remaining 49% stake will be paid for in cash or in a future deal.

No response was received from Zetwerk regarding queries at the time of publication. This prospective acquisition follows the company’s recent receipt of Rs 600 crore from its founder-owned entity Creovate Innovation, a development that was exclusively reported by Startup Superb.

About Kryfs Power Components

Founded in 1992, Kryfs is a transformer core manufacturer that operates with a capacity to process 50,000 MT of CRGO electrical steel each year. The company is involved in various segments of the energy supply chain, from solar energy production to transformer manufacturing, and operates 10 facilities across Dadra and Nagar Haveli, Maharashtra, Gujarat, and Madhya Pradesh.

Zetwerk’s Growth Strategy

Zetwerk’s acquisition aligns with its objectives for a $400–500 million IPO, aiming for a valuation of $5 billion. By integrating established and revenue-generating firms like Kryfs, the company intends to enhance its manufacturing capabilities and refine its market positioning prior to the public listing.

Funding and Market Competition

According to startup data intelligence sources, Zetwerk has secured over $800 million through a combination of equity and debt funding, including a $70 million Series F round led by Khosla Ventures in December, which set its post-money valuation at $3 billion. This was another exclusive report from Startup Superb.

While Zetwerk has not yet released its FY25 figures, it has reported a 26% year-on-year increase in gross revenue, reaching Rs 14,436 crore in FY24. The company competes with industry players such as Infra.Market, OfBusiness, and Moglix, with Infra.Market recently raising $150 million from Mars Growth Capital.