Former Zetwerk executives are attracting investors to a new generation of Indian manufacturing startups. At least a dozen ventures have raised more than $130 million in startup funding. Their growth spans specialty chemicals, defense electronics, materials science, and technical textiles. The trend comes as Zetwerk prepares to enter the stock market on October 23, 2026.
Scimplify is among the most prominent examples. Co-founded in 2023 by former Zetwerk Chemicals Executive Salil Srivastava, the specialty chemicals startup has reached a reported annualized revenue run rate of $200 million. Its latest $25 million funding round was led by Hitachi Ventures, with the company reportedly valued at $250 million. Scimplify has disclosed total equity funding of $80 million.
Manufacturing Startups Attract Fresh Capital
Other former Zetwerk executives are building businesses across industrial technology. Sanlayan Technologies, founded in 2023 by Abhijit Kothawale, Rohan Gala, and Rahul Vamsidhar, raised ₹186 crore in a Series A round in June 2025. It had also acquired a majority stake in Dexcel Electronics, an established embedded systems company.
Materials science startup Whizzo raised $15 million in a Series A round led by Fundamentum in 2026. STCH, an AI-led fabric development company founded in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara, secured $5.5 million from a round led by Omnivore.
Key highlights
- Former Zetwerk executives have raised more than $130 million across at least a dozen startups.
- Indian manufacturing startups secured $1.92 billion across 127 deals in 2026 so far.
- Scimplify is targeting a $400 million annualized revenue run rate within a year.
These businesses share a common model: they coordinate production through partner factories instead of owning large manufacturing facilities. Scimplify works with more than 500 plants, while Whizzo collaborates with over 120 small and midsized manufacturers and exports to more than 15 countries.
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Startup Funding Grows Despite a Tighter Market
Venture Intelligence data shows that Indian manufacturing startups raised $1.92 billion across 127 deals in 2026 so far, compared with $164 million across 31 deals during all of 2020. The increase stands out as broader startup investment remains selective.
Tracxn data shows Indian technology companies raised $10.3 billion in the first nine months of 2026, up 7% year over year. However, funding rounds fell 38% to 1,134, while seed funding declined 37% to $698 million. India's deeptech sector also recorded $2.96 billion across 189 deals in 2025, according to IVCA.
Several investors backing Zetwerk early have also invested in its alumni ventures. Lightspeed led Whizzo's seed round, Accel is an investor in Scimplify, and Kae Capital backed STCH.
Zetwerk, founded in 2018 by Amrit Acharya and Srinath Ramakkrushnan, became India's first manufacturing unicorn in 2021. Its upcoming IPO, subscribed 3.1 times, adds another milestone to its growth story. Yet the alumni startups still face a challenge: securing later-stage capital to scale their operations.
Scimplify plans to invest $7.5 million from its latest funding in US expansion. The market already accounts for about 30% of its business, as the company targets $400 million in annualized revenue within a year.
