One quick thing: Flipkart receives NCLT nod to move domicile back to India ahead of IPO   

In today’s newsletter: 

• Data centres power Zetwerk’s $2-billion run
• MeitY backs DPIIT’s AI copyright model
• Atomberg appoints bankers for Rs 2,000 crore IPO

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AI’s data centre boom is indirectly boosting Zetwerk’s next growth leg.

India’s AI moment isn’t just about models and cloud giants. It’s also playing out in transformers, grids and heavy industrial equipment and that’s where IPO-bound Zetwerk is finding its next wave of growth.

The Bengaluru-based manufacturing platform expects to close FY26 with over $2 billion in revenue, riding a sharp rise in demand from energy and power projects linked to data centre expansion in India and the US. 

• Importantly, this is actual delivered turnover, not a run-rate, cofounder and CEO Amrit Acharya told us in an interview

Zetwerk doesn’t sell directly to hyperscalers like Google or OpenAI.  But as data centres mushroom, the invisible infrastructure behind them, power generation, transmission and grid equipment, is surging, pulling Zetwerk deeper into global supply chains.

“My customer’s customer is basically your OpenAI or Google, who are setting up these data centres. They need localised power. Once a power station is built, it needs transformers, solar, grid connectivity, we are part of that supply chain, indirectly,” Acharya said.

Energy-related manufacturing now contributes nearly 40% of Zetwerk’s revenue and is growing at about 100% year-on-year. 

• Capacity constraints are now visible across the value chain 

Acharya also said that some transformer and grid components now have two-to-three-year delivery timelines, reflecting tight capacity and sustained demand. 

Alongside energy, Zetwerk is expanding in electronics manufacturing, producing laptops, wearables, hearables and IT hardware, while moving backwards into PCB manufacturing to tighten supply-chain control under India’s PLI schemes.

Competing with China remains tough. 

“Their cost of capital is dramatically lower and they think far more long-term. That makes them formidable,” Acharya said. 

Despite this, he believes India’s industrialisation, driven by PLIs, tariffs and factory build-outs, is a secular, multi-year trend.

 All this comes as Zetwerk gears up for an IPO that could raise up to $750 million in early 2026. 

The company has mandated top investment banks, strengthened its balance sheet through promoter capital infusion, raised additional debt lines, and says it is EBITDA profitable with sufficient operating cash flows, positioning it for the public markets.

Find out more 

In the AI copyright debate, MeitY has picked a side.

MeitY has backed DPIIT's proposed model for AI training data, calling it a middle path between large-scale AI development and compensation for creators.

• The endorsement was part of MeitY's submission annexed to the government’s AI and copyright working paper

MeitY said broad access to datasets is essential for AI, but must come with "proportionate compensation" to creators.

• The ministry has proposed a minimum revenue threshold for AI developers

• Only companies crossing this threshold would be required to share revenues with rights holders

The ministry warned that vague royalty allocation could spark litigation.

It urged the proposed Copyright Royalties Collective for AI Training (CRCAT) to adopt transparent mechanisms for calculating and distributing payouts.

MeitY's position aligns with the majority view of the DPIIT committee. Nasscom has dissented, pushing instead for an exception for AI training

• Any move forward will require amendments to the Copyright Act, 1957, with consultations still ongoing

Go deeper

From cooling homes to soon warming up Dalal Street – Atomberg’s smart fans are getting ready for their biggest spin yet. Joining a growing list of companies going public. 

Atomberg, a startup that makes smart fans, mixer grinders, water purifiers and more, has picked bankers for an IPO to raise around Rs 2,000 crore, we were told. 

• Avendus Capital, IIFL Capital, Axis Capital and ICICI Securities are the bankers Atomberg has engaged with
  
  
• Of those, Avendus and IIFL have been finalised, and Atomberg will pick one between Axis and ICICI 

Atomberg is likely to raise Rs 2,000 crore ($220 million) via an IPO. 

“Atomberg will look to file its draft IPO papers, likely under the confidential route, in January and will aim to list by around March or April of 2026,” a source said. 

While nothing has been finalised yet, companies typically dilute a 10% stake during IPOs, which would translate to a valuation of Rs 20,000 crore for Atomberg ($2.2 billion). 

• Atomberg was last valued at around $400 million during its fundraise in 2023
  
  
• Atomberg has so far raised over $150 million (around Rs 1,700 crore) from Temasek, A91 Partners, Steadview Capital, Jungle Ventures and more

The company has consistently grown at over 30% in the last few years and ended FY24 with revenues of Rs 865 crore and incurred losses of Rs 203 crore. 

Dig deeper

• OpenAI-backed AI drug-discovery startup Chai Discovery has raised $130 million in a round led by Oak HC/FT and General Catalyst, valuing the company at $1.3 billion just three months after its previous funding and taking total capital raised to $225 million.
  
  
• Despite limited returns so far, 68% of CEOs plan to increase AI spending in 2026 after a year of trillions of dollars in AI investments, a Teneo survey shows.

“Slop” is Merriam-Webster’s 2025 Word of the Year, a label for creepy, weird and clearly fake content flooding the internet.

• Powered by easy-to-use AI tools, slop shows up as absurd videos, bad ads, fake news and junky digital books

The dictionary says rising searches reflect awareness, not defeat: people are learning to spot low-quality AI content and are increasingly looking for what’s real, human and trustworthy.

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