Garuda Aerospace, one of India’s leading dronetech startups, has announced the successful closure of its Series B funding round, raising INR 100 Cr (approximately $11 Mn). The round was led by Venture Catalysts along with participation from a host of other undisclosed investors. The funding comes at a post-money valuation of $250 Mn, the same valuation the startup claimed in 2023, indicating a flat round.
Founded in 2015 by Agnishwar Jayaprakash and Rithika Mohann, the Chennai-based company offers multipurpose drone solutions across sectors such as defence, agriculture, security and surveillance, and transportation and logistics. Additionally, Garuda Aerospace provides drones-as-a-service (DaaS) solutions and claims to have trained over 1 Lakh students as drone pilots.
The newly raised capital will be deployed to scale up the company’s production capabilities and strengthen its research and development operations. “As we prepare for a global growth expansion journey, this investment reinforces our commitment to building world-class, indigenous drone technologies that contribute to India’s economic progress, self-reliance in defense, and technological leadership on the global stage,” said Jayaprakash.
Garuda Aerospace has also revealed that it has earmarked $10 Mn from the current round to support its overseas expansion strategy. The company plans to foray into 50 international markets over the next few years, aiming to bolster its global presence. This development comes nearly six months after Indian cricket legend MS Dhoni backed the startup in an undisclosed investment deal.
The startup, which previously expressed its intent to go public by the end of 2024, has not yet provided any updates on the IPO plans. With the latest funding, the total capital raised by Garuda Aerospace has crossed $30 Mn since its inception.
Garuda operates in an increasingly competitive space, going head-to-head with other heavily funded players like Dums, IdeaForge, DroneAcharya, and Newspace. The Indian dronetech ecosystem, while still in a nascent stage, is poised for significant growth. According to Inc42’s Indian Drone Tech Startup Landscape & Market Opportunity Report 2024, the market is projected to reach a valuation of $13 Bn by 2030. However, the report also highlights that funding remains a challenge for many dronetech startups, with capital primarily flowing to a select few.
Nonetheless, the Indian government has recently signaled strong support for deeptech innovation. A significant portion of the INR 10,000 Cr Fund of Funds announced in the Union Budget 2024-25 is expected to be directed toward deeptech startups, providing a much-needed boost for the sector.