IPO-bound Zetwerk sees a rise in demand from AI-led data centres, to close FY26 above $2 billion in revenue 

AmritAcharyaZetwerk

Business-to-business manufacturing tech firm Zetwerk expects to close FY26 with more than $2 billion in revenue, riding a sharp surge in demand from the energy and power segment as data centres expand rapidly across India and the United States, co-founder and chief executive Amrit Acharya told Moneycontrol.

Energy-related manufacturing, including transformers, solar trackers and wind turbine components, now contributes nearly 40% of Zetwerk’s revenue and is growing at roughly 100% year-on-year, Acharya said, highlighting how the company is benefiting from global infrastructure buildouts.

While Zetwerk does not supply directly to hyperscale data centre operators such as Google or OpenAI, its role in the extended supply chain for global equipment manufacturers has positioned it to benefit from the surge in power and grid equipment demand tied to data centre build-outs.

“Data centres require massive investments in power generation, transmission and grid equipment,” Acharya said, adding that once power plants come up, there’s immediate demand for transformers, storage, grid connectivity and other components that Zetwerk helps deliver through its manufacturing network.

The growth of the energy segment, he noted, is being driven by both secular industrial trends—such as India’s production-linked incentive (PLI) schemes and the US push for domestic manufacturing—and AI-related demand.

“Once you build a power plant, you need all the components that go with it,” Acharya said, underlining how Zetwerk’s ecosystem is part of that larger industrial landscape even if it isn’t selling directly to cloud or AI companies.

Lead times for certain transformers and grid components have stretched to two to three years, reflecting tight capacity and high demand in these categories, he added.

Founded in 2018, Zetwerk has grown from a digital marketplace connecting manufacturers to customers into an end-to-end industrial manufacturing platform that orchestrates engineering, production and delivery for custom-built components across sectors. Customers provide designs; Zetwerk handles supplier selection, quality control, timelines and logistics.

Acharya said the company expects to finish FY26 with more than $2 billion in revenue, noting this figure represents actual delivered and executed turnover rather than run-rate estimates.

Zetwerk’s operations span finished goods and materials platforms, supplying everything from wind turbines and solar trackers for renewable projects to critical power infrastructure such as transformers used by utilities and industrial customers. Its client base includes several multinational and capital goods companies.

Even as energy and power remain headline growth drivers, Zetwerk is also expanding its electronics manufacturing footprint, particularly in segments supported by India’s PLI schemes.

The company makes laptops, hearables, wearables, IT hardware and is integrating backward into printed circuit board (PCB) production, a move that tightens control over its supply chain.

Acharya said competing with China remains formidable due to its low cost of capital and scale, but he sees India’s industrialisation as a long-term trend that will continue to draw global supply chains.

Zetwerk is also preparing for a public listing, with plans to raise up to $750 million through an initial public offering that could take place in early 2026, according to multiple banking mandates and media reports.

The Bengaluru-based firm has tapped a slate of major banks, including Kotak Mahindra Capital, Goldman Sachs, Morgan Stanley, Avendus and others, to lead the IPO process, with a confidential draft filing expected ahead of the planned launch.

Ahead of the listing, the company’s co-founders have also moved to strengthen the balance sheet, they have agreed to infuse capital of around Rs 600 crore via a newly formed entity, and Zetwerk has raised additional debt and working capital facilities to solidify its financial position going into the public markets.

Acharya also said Zetwerk is EBITDA profitable and generates sufficient operating cash flow to service debt, positioning it for sustained expansion. The company’s asset-light model, with around 80% of its supply base owned by third parties, gives it flexibility to pivot across sectors as demand cycles evolve.