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Manufacturing unicorn Zetwerk, along with its US subsidiary Unimacts Global LLC, has filed a lawsuit against General Catalyst-backed power equipment manufacturer Ayr Energy for alleged theft and misuse of its trade secrets and proprietary business information.The suit, filed in the District Court of Harris County in Texas on October 17, accuses Ayr Energy of unlawfully acquiring and exploiting Zetwerk’s confidential data, including business strategies, supply chain frameworks, customer databases, pricing structures and technical documentation to build its own operations.According to the lawsuit, which ET has seen, some former Zetwerk executives who had access to highly confidential information were allegedly solicited and hired by Ayr Energy. It also claims that Anirudh Reddy Edla, a former senior executive in its energy business, incorporated Ayr Energy in 2024 while still employed with Zetwerk.The filing noted that Ayr Energy began approaching Zetwerk’s long-standing customers using proprietary know-how and business intelligence taken from its IT systems. Zetwerk claims Ayr Energy’s rapid business growth, amassing an order book of about $250 million within months of the employee departures, could only have been achieved through unlawful use of its confidential data.Zetwerk has sought around $100 million in damages through the lawsuit.Queries sent to Zetwerk did not elicit any responses as of press time Monday.Founded in 2024, Ayr Energy designs and manufactures power transformers, distribution transformers, special-purpose transformers, high-voltage circuit breakers and medium-voltage switchgears, according to its website.Through the lawsuit, Zetwerk is seeking temporary and permanent injunctive relief to prevent further use or disclosure of its trade secrets. The company has also asked for the return or destruction of proprietary materials, along with disgorgement of profits and exemplary damages.Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Accel-backed Zetwerk operates a managed marketplace for contract manufacturing, partnering with industrial and consumer businesses to get their products made through a global network of small and medium-scale manufacturers.In April, ET reported that the company has plans to go public in 12-24 months.In December last year, Zetwerk raised $70 million in fresh capital, bringing the total in that round to $100 million. The investment was led by Khosla Ventures and IndiGo airline founder Rakesh Gangwal, with UK-based Baillie Gifford joining as a new investor. The company was valued at around $3 billion in that round.According to Tracxn, Zetwerk reported revenue of Rs 14,596.8 crore for fiscal 2024, with a net loss of Rs 919.2 crore. It has yet to file the financials for FY25.
