Legal · Professional & Local Services

Ayr Energy files counterclaim against Zetwerk

By Startup Enthusiast · 23 July 2026

What they do

Ayr Energy supplies transformers, switchgear and circuit breakers to utilities and renewable energy developers

It filed a counterclaim against Zetwerk seeking at least $1 billion in damages and a US import ban on allegedly infringing transformers

The legal battle between the two startups competing in the US power equipment market is escalating

Ayr Energy filed a counterclaim against Zetwerk accusing it of trade secret theft, trademark infringement and false advertising.
Ayr seeks at least $1 billion in damages and a US import ban on allegedly infringing transformers.
Zetwerk first sued Ayr in Texas in October 2025, seeking $100 million in damages.
Ayr filed a complaint before the USITC (US International Trade Commission) and counterclaims in Texas court against Zetwerk and three affiliates: Zetwerk Manufacturing USA Inc, Unimacts Global LLC and KRYFS Power Components Ltd.
Ayr alleges Zetwerk sent an employee under false pretenses to access confidential transformer business information.
Ayr claims Zetwerk began advertising custom transformer capabilities it did not previously have and used the Ayr Energy name in online ads.
Ayr asks the USITC to investigate and block import, marketing and sale of the disputed transformers.
Zetwerk says Ayr withdrew an earlier California claim before filing this action.
A Texas court rejected Ayr's attempt to dismiss Zetwerk's October 2025 lawsuit.

Zetwerk alleges Ayr cofounder Anirudh Reddy incorporated Ayr while still a senior Zetwerk executive and later left with confidential documents.
Zetwerk claims Reddy incorporated Ayr about four months before resigning from Zetwerk in January 2025.
Zetwerk says Reddy downloaded customer lists and pricing models before leaving.
Zetwerk estimates its loss at nearly $77 million and alleges Ayr's gains could exceed $100 million.
Zetwerk also accused Ayr of hiring key employees including former Unimacts executive Chad Stuckey, who allegedly carried confidential information and business relationships.

Ayr Energy was founded in 2024.
It supplies transformers, switchgear and circuit breakers to utilities, renewable energy developers and industrial customers.
Zetwerk was founded in 2018 and offers manufacturing services for energy, industrial manufacturing, aerospace, defence, automotive and electronics.
Zetwerk received SEBI approval for its proposed IPO in July 2026.
Zetwerk filed confidentially for an India public listing in March 2026.
Zetwerk's IPO reportedly comprises a fresh issue of $300 million and an offer for sale of shares worth up to $150 million.
Zetwerk has raised over $700 million in funding to date.
Zetwerk's backers include Peak XV Partners, Lightspeed and Mars Growth Capital.