Zetwerk Cofounder Rahul Sharma Steps Into Non Executive Role To Launch AI Venture

IPO-bound contract manufacturer Zetwerk’s cofounder and managing director of its precision business (electronics), Rahul Sharma, is transitioning from an executive role to a non-executive position. Sources told Inc42 that he would be looking to launch a new AI robotics venture.

The new venture is likely to be backed by Zetwerk and will also raise capital independently to fund its growth, sources added.

Sharma, who cofounded the unicorn in 2018, is currently in the market to raise capital for the new venture. An IIT Roorkee alumnus, he previously worked at BlackBuck and Schlumberger.

Questions sent to Zetwerk did not elicit a response till the time of publication.

The move comes a day after Zetwerk secured SEBI’s approval for its proposed initial public offering, taking the contract manufacturer a step closer to a stock market debut.

Zetwerk filed its draft IPO papers confidentially in March. The public offering, which was cleared by the SEBI this week, is expected to include a fresh issue of nearly $300 Mn and an offer for sale component worth about $150 Mn. The company is also reportedly seeking $50 Mn to $60 Mn in pre-IPO funding.

Founded in 2018 by Acharya, Srinath Ramakkrushnan, Vishal Chaudhary and Sharma, Zetwerk is a full-stack manufacturing platform that produces industrial components, electronics, renewable energy equipment and consumer hardware.

The startup operates a B2B contract manufacturing model, under which clients provide product designs and Zetwerk connects them with factories in its network. It also manages procurement, production, quality control, logistics and delivery.

Zetwerk claims to operate more than 100 production facilities across India, the US, Germany, Spain, Vietnam and Mexico.

The startup entered the unicorn club in 2021 after raising $150 Mn. Overall, it has raised more than $700 Mn in funding to date and counts Peak XV Partners, Lightspeed and Mars Growth Capital among its backers.

Sharma’s transition is the latest in a string of seasoned startup founders relinquishing operating roles to build new ventures.

Just a day earlier, Inc42 exclusively reported that former Livspace cofounder and India CEO Saurabh Jain had joined forces with the company’s former chief business officer, Lalit Mittal, to launch Gravity.

Earlier this week, BharatPe cofounder Shashvat Nakrani was reported to be joining Dubai-based luxury ecommerce platform Luxury For You as cofounder and CEO. 

Last month, Zeta founder Bhavin Turakhia unveiled AI startup Neo, committing $30 Mn of his personal capital to the venture.

The burst of entrepreneurial activity coincides with India’s rapidly expanding AI economy. The country’s AI market is projected to swell 5.3X to $126 Bn by 2030, while the technology could add as much as $1.7 Tn to India’s GDP by 2035.

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