Top 5 tech and startup stories of the day

1. Zetwerk's Promoters Pledge Near One-Third of Their Stake

Ahead of its IPO, contract manufacturing startup Zetwerk's promoters have pledged nearly a third of their combined stake, equal to around 6.65% of the company's shares. Founders Srinath Ramakkrushnan and Amrit Acharya directly pledged 1.85% of Zetwerk, while another 4.81% is held through their ventures, Creovate Innovation and family trusts. Of this, 4.8% has been pledged.

2. Shiprocket's IPO Subscription Soars

Shiprocket, an insurance distribution platform, witnessed strong demand for its IPO, with subscriptions reaching nearly 100 times the shares on offer within three days. Investors placed bids for 937 crore shares against 9.4 crore shares available for subscription. The company's shares also traded at a 38% premium in the grey market, indicating expectations of a successful listing.

3. AI Mergers and Acquisitions Rise in India

AI-related mergers and acquisitions (M&As) in India have seen a surge, with deals valued at $980 million this year as of August 6. The number of deals has surpassed $624 million across 33 transactions this year, surpassing the $232 million from 2024. Startups facing challenges in raising funds are increasingly becoming acquisition targets for larger companies seeking specialized talent and resources.

4. Component Exports Shrink Due to Supply Constraints and Higher Tariffs

India's electronic component exports declined by 16% year-on-year to $1.34 billion in the June quarter. The primary reason for the decline is attributed to supply constraints and increased trade barriers. Despite the decline, overall electronics exports grew by 22.5% YoY, with components being the only segment facing a decline.