Chennai-based deeptech startup Fabheads raises $10 million in funding

Fabheads, a composite manufacturing technology startup founded by former ISRO engineers, has raised $10 million in fresh funding to scale up its operations. The Series A round was led by venture capital firm Accel and included $2.3 million in venture debt from Trifecta Capital.

With the latest capital infusion, Fabheads’ total funding now stands at $13 million. The Chennai-based startup plans to use the proceeds to expand its manufacturing capacity, strengthen its research and development operations, and build out a larger engineering and leadership team to meet rising global demand.

A significant portion of the funds will go toward establishing a new 80,000- to 100,000-square-foot factory in Bengaluru’s Aerospace Park in the KIADB region. The facility, currently under construction, is expected to be operational within six months. Once complete, it will host more than 70 advanced manufacturing machines—up from the 13 currently housed at Fabheads’ Chennai facility.

Fabheads has developed a proprietary manufacturing technique called Adaptive Tow Placement (ATP), which enables precise automation of composite fiber placement. Composite materials, though known for their strength and light weight, are typically brittle and difficult to work with using automated processes. Fabheads’ ATP system overcomes these hurdles by allowing intricate geometries to be formed with high repeatability and reduced material waste.

The startup claims that its automation platform reduces material wastage by 20%, cuts production cycle time by 30%, and decreases manufacturing costs by up to 50% while also bringing down rejection rates.

Founded in 2015 by Dhinesh Kanagaraj and Abhijeet Rathore, both former engineers at ISRO, Fabheads is targeting industries such as aerospace, robotics, drones, shipping, and mobility. Its current clientele includes marquee names like Tata Group, Motherson Group, and ISRO. The company also has plans to expand globally, tapping into demand across defense and clean energy sectors.

“This funding enables us to take a major step towards making composites accessible for aerospace, mobility, clean energy, and more,” Kanagaraj said. “As the only company from India with this specialized technology, we are uniquely positioned to lead innovation in the composite manufacturing space both domestically and globally.”

Accel Partner Prayank Swaroop said, “As composites become increasingly vital across aerospace, defence, mobility, and renewable energy, Fabheads is addressing the core manufacturing bottlenecks that have long hindered widespread adoption. We’re excited to back their journey of building world-class deeptech from India for the world.”