Zetwerk promoters pledge stake; PhysicsWallah Q1 losses narrow

Zetwerk's promoters have pledged nearly a third of their stake ahead of the company's IPO. This and more in today's ETtech Top 5.

Also in the letter:
■ Shiprocket IPO subscription soars
■ AI M&As rise in India
■ Component exports shrink

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(L-R) Srinath Ramakkrushnan and Amrit Acharya, cofounders, Zetwerk

Nearly a third of contract manufacturing startup Zetwerk promoters' combined pre-IPO holding, or about 6.65% of the company's shares, has been pledged, according to its updated draft red herring prospectus (UDRHP).

Tell me more: Founders Srinath Ramakkrushnan and Amrit Acharya have directly pledged 1.85% of Zetwerk. The promoter group holds another 4.81% through Creovate Innovation, owned by the founders, and family trusts linked to them. Of this, 4.8% is pledged.

Zetwerk filed its UDRHP with the Securities and Exchange Board of India (Sebi) on Thursday as it prepares for an initial public offering (IPO).

IPO details:

• Fresh issue: Up to Rs 2,600 crore.
• Offer for sale (OFS): Up to 96,837,455 equity shares by existing shareholders.
• Use of funds: Rs 1,250 crore for company-level debt repayment, Rs 550 crore towards servicing subsidiary borrowings, with the rest for unidentified acquisitions and general corporate purposes.
• Merchant bankers: Kotak Mahindra Capital, Goldman Sachs, Pantomath Investment Banking, Morgan Stanley, HSBC, and JM Financial.

FY26 financials:

• Revenue: Up 40% to Rs 15,913 crore vs Rs 11,366 crore in FY25.
• Net loss: Up more than fourfold to Rs 1,606 crore vs Rs 371 crore a year ago.

Also Read: IPO-bound Zetwerk faces counterclaims in escalating US trade secret dispute

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PhysicsWallah Q1 loss narrows 31%; edtech to transfer FinZ loan book

Prateek Maheshwari and Alakh Pandey, founders, PhysicsWallah

Edtech firm PhysicsWallah narrowed its losses in the April-June quarter as operating revenue grew.

The numbers:

• Operating revenue: Up 24% to Rs 1,054 crore from Rs 851 crore YoY.
• Net loss: Down 31% to Rs 88.3 crore from Rs 127 crore YoY.
• Earnings before interest, taxes, depreciation and amortisation (Ebitda): Rs 52 crore, against a loss of Rs 21 crore YoY.

What else? PhysicsWallah has signed a term sheet with a Reserve Bank of India-registered lender to transfer FinZ Finance's existing loan portfolio, with the deal expected to close within three months. It invested Rs 120 crore in the subsidiary during the quarter, after exiting direct student lending in June.

Also Read: PhysicsWallah to raise stake in Sarrthi IAS to 51% for Rs 72 crore

Turtlemint revenue up 40% in Q1, losses narrow

(L-R) Anand Prabhudesai and Dhirendra Mahyavanshi, founders, Turtlemint

Peak XV Partners-backed insurance distribution platform Turtlemint narrowed its losses in the June quarter even as revenue from operations grew strongly.

Financials:

• Revenue: Up 40% YoY to Rs 294 crore from Rs 210 crore.
• Net loss: Down 19% at Rs 37.9 crore, against Rs 46.7 crore a year ago.
• Total expenses: Up 28% to Rs 333.5 crore from Rs 260.5 crore YoY.

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Shiprocket IPO ends day 3 with 99.3x subscription on strong QIB push

Saahil Goel, CEO, Shiprocket

Shiprocket's initial public offering (IPO) closed with strong demand after a three-day subscription period, with the issue being subsribed nearly 100 times.

What's happening? Investors placed bids for 937 crore shares against 9.4 crore shares on offer, with bidding accelerating on the final day.
Demand was also strong in the grey market, where the company's shares traded at a 38% premium to the upper band of the issue price of Rs 97, signalling expectations of a strong listing.

IPO subscription status:

• Overall: 99.3x subscription against 9.4 crore shares.
• Qualified institutional buyers (QIBs): 122.8x subscription against 5.1 crore reserved shares.
• Non-institutional investors (NIIs): 88.9x subscription against 2.6 crore shares.
• Retail individual investors (RIIs): 46.4x subscription against 1.7 crore reserved shares.

Also Read: Shiprocket's Rs 7,056 crore IPO rewards early backers, dents returns for late-stage investors

IPO details:

• Issue size: Rs 1,617 crore.
• Price band: Rs 92-97 per share.
• Post-money valuation: Rs 7,056 crore.
• Listing: August 19, 2026 on the NSE and BSE.

Shiprocket's IPO values the company about 30% below the roughly Rs 10,000 crore valuation at which it last raised funds in December 2024. ET first reported its IPO plans and valuation on August 3.

Also Read: Shiprocket raises Rs 727 crore from anchor investors ahead of IPO launch

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AI M&As roaring this year with deals nearing $1-billion mark

Mergers and acquisitions (M&As) involving artificial intelligence (AI) startups in India have surged over the past two years as companies seek faster product development, data, and specialised talent.

More on this:

• There have been 25 deals worth $980 million this year as of August 6, per data from Venture Intelligence.
• The deal value so far this year has already surpassed $624 million across 33 M&A transactions in the whole of 2025, and $232 million from eight deals in 2024.
• Startups struggling to raise funds are increasingly becoming acquisition targets for stronger rivals, investors and founders said.

For instance: Deals this year include Palo Alto Networks' acquisition of Portkey, Blackstone's purchase of a controlling stake in Neysa, Fastenal's acquisition of Rampp.ai, and Cyient's deal for TAO Digital Solutions.

What else? Acquihires are also rising as companies seek specialised talent. US-based meeting note-taker Granola acquired Dimension, while Exotel bought Dubverse.

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PCB crunch, US tariffs shrink Q1 electronic component exports

India's electronic component exports declined in the June quarter even as total electronics shipments grew, with supply constraints and higher trade barriers weighing on manufacturers.

By the numbers:

• Component exports: Down 16% year-on-year (YoY) to $1.34 billion in the first quarter, according to commerce department data.
• Overall electronics exports: Up 22.5% YoY.
• Components were the only segment to decline within the broader $22 billion electronics export basket.
• Component exports have fallen for three straight months in FY27, reversing the monthly growth seen in FY26.

But why? Officials pointed to supply chain disruptions, including weak production of printed circuit boards (PCBs), and a sharp fall in exports to the US. PCBs are a key part of electronic devices, providing the physical base and electrical connections needed for components to communicate.

The decline comes despite government efforts to encourage manufacturers to build domestic upstream capacity.