IndiGo co-founder Rakesh Gangwal invests $20 million in Zetwerk

“Mr Gangwal, with his extensive experience spanning several decades, brings invaluable insights into building businesses and iconic brands. His strategic guidance will be crucial in building Zetwerk into a generational company,” read a statement from Zetwerk.

Gangwal is believed to have invested in the company at a valuation of $2.8 billion. Mint reported in April 2023 that Zetwerk had agreed to raise $100 million from Avenir Growth Fund at a valuation of $2.7 billion.

Gangwal, who co-founded IndiGo with Rahul Bhatia in 2005, has been looking to diversify his investments since February 2022, when he resigned from the IndiGo board as a non-executive, non-independent director. “I have been a shareholder in the company for more than 15 years and it’s only natural to someday think about diversifying one’s holdings,” he wrote in his resignation letter. Since then, Gangwal and his associates have been gradually reducing their stake in IndiGo.

In March 2019, Bhatia and his associates held a 38.26% stake in the airline, while Gangwal and his associates held 36.68%. As of December 2023, Bhatia and his associates have the biggest stake in IndiGo at 37.92 %, followed by Gangwal and his associates at 25.21%. This means the total shareholding of the two promoters in IndiGo is 63.13%, compared to 74.93% in March 2019.

IndiGo is the largest airline in India with a fleet of over 300 aircraft, having cornered a more than 60% market share in domestic air traffic.

Zetwerk offers manufacturing services to companies in sectors such as consumer goods, apparel, defence, space and aerospace. It more than doubled its revenue from operations to ₹11,448 crore in FY23, from ₹4,960 crore in FY22. Its losses were around ₹109 crore in FY23, up from around ₹60 crore in FY22.

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Published: 07 Mar 2024, 05:27 PM IST