” The raids are based on information worked upon by the Bengaluru unit of the IT department. Certain incriminating materials have been gathered and are currently being studied. The quantum and the modus operandi would be clear once the raids are concluded,” said an official privy to the development. Accel India, D1 Capital Partners, Greenoaks Capital, Lightspeed Venture Partners, Sequoia Capital are some of Zetwerk’s investors.
“The ongoing searches are now going beyond offices to Zetwerk’s warehouses,” said one of the persons, who did not wish to be identified.
In an emailed response to queries from ET, a spokesperson for the company said, “Zetwerk adheres to very high standards for compliance, regulations and the law of the land. We are in full compliance with all applicable tax and legal requirements and remain committed to cooperating with the authorities. The queries in your mail are speculative in nature and we deny them.”
The ongoing investigation comes at a time when questions have been raised around compliance and corporate governance issues at some of the most well-funded startups which have been growing at breakneck speed. According to an ET report on March 17,
tax authorities also carried out searches at Accel and Tiger Global-backed Infra.Market’s several offices in India. ET also reported about
a probe being conducted by EY at Trell, an influencer-led social commerce startup.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Zetwerk Manufacturing helps small and medium enterprises translate their digital designs into physical products. It operates in more than 25 industry segments. In December last year, Zetwerk Manufacturing raised about $210 million and prior to that, in August, the company had picked up $150 million led by D1 Capital Partners at a $1.33 billion valuation.
Discover the stories of your interest
In an interview with ET in August last year, Acharya, CEO of Zetwerk, said that the company
had turned Ebitda positive and was likely to grow fourfold in 2021-22 to earn a revenue of about Rs 3,500 crore. Ebitda refers to a company’s earnings before interest, tax, depreciation and amortisation.
The company is focusing on strong unit economics and executing for long-term growth, Acharya had said, adding that profitability was an important milestone for the company.
The company has entered new manufacturing categories such as consumer goods, apparel, defence, space and aerospace.
About 85% of its business is concentrated around the Indian market and the international business contributes about 10% to its order book.
