Founders Srinath Ramakkrushnan and Amrit Acharya have pledged 1.85% of the company’s equity directly. However, the broader promoter group, which holds 4.81% of the company through Creovate Innovation Pvt Ltd (a holding company owned by the two founders) and family trusts linked to them, is heavily encumbered. Of their holding, 4.80% is pledged, as per the draft IPO filing.
Zetwerk’s promoters pledged their shares in September 2025, when they raised debt to invest around Rs 600 crore in the company.
Ahead of the IPO, some of these pledged shares are being released. As per the UDRHP, up to 28 million shares held by the founders and nearly 23 million Creovate shares are being released to enable their sale in the offer for sale (OFS) component.
Additional shares are also being released only so they can be locked in post-listing, as regulations by the Securities and Exchange Board of India (Sebi) require. A portion of the remaining pledged shares — those beyond what’s needed for the OFS or lock-in — will continue to remain pledged even after listing.
To put things in perspective, Ramakkrushnan currently holds an 8.36% stake in the company, Acharya: 7.53%, and Creovate: 2.19%. The remaining promoter group members, which are the family trusts linked to the two founders, collectively hold another 2.62%.
As part of the offering’s OFS, Ramakkrushnan and Acharya are each selling shares worth about 1% of the company, while Creovate is selling shares worth about 1.5%.
Zetwerk is looking to raise Rs 2,600 crore via a fresh issue in the IPO. In the OFS portion, investors, including Peak XV Partners, Lightspeed and Kae Capital, are also selling shares.
The company’s net loss for fiscal year 2026 widened more than fourfold to Rs 1,606 crore from Rs 371 crore a year earlier, even as its operating revenue grew 40% to Rs 15,913 crore.