Zetwerk and Ayr Energy Settle Legal Dispute

Indian manufacturing firm Zetwerk, which is preparing for an IPO, and US-based transformer startup Ayr Energy have reached a settlement to end their protracted legal battle. Both parties have agreed to dismiss all claims in lawsuits pending before the Texas Business Court, as well as a separate case in Bengaluru, India.

The dispute began over a year ago when Zetwerk accused Ayr Energy's founder, Anirudh Reddy, of establishing the company while still employed by Zetwerk. Zetwerk alleged that Reddy downloaded hundreds of internal documents, including customer lists and pricing information, before his resignation in January 2025. The manufacturing company claimed that Ayr Energy utilized this information and its contacts to secure contracts from customers in Zetwerk's sales pipeline.

Ayr Energy, in turn, accused Zetwerk of trade secret theft, trademark infringement, false advertising, fraud, and unfair competition. The company sought at least $1 billion in damages and approached the US International Trade Commission (USITC) over alleged trade secret violations.

Zetwerk is currently preparing for its public market debut. The company recently disclosed increased net losses for the fiscal year ending March 2026, attributed partly to provisions related to a discontinued business and accounting charges from founders increasing their ownership. However, operating revenue saw a significant jump of over 40% compared to the previous fiscal year.