Defence electronics startup Sanlayan raises Rs 186 crore to accelerate indigenous tech development

Sanlayan Technologies, an aerospace and defence startup, has raised Rs 186 crore in a Series A funding round. The oversubscribed round was led by marquee investors Ashish Kacholia, Lashit Sanghvi, and Jungle Ventures, with participation from existing investors Gemba Capital, Singularity Ventures, and new investor Shastra VC.

Previously, Sanlayan raised Rs 36 crore in March 2024 from Singapore-headquartered Jungle Ventures via its First Cheque@Jungle platform. The company also acquired a majority stake in Dexcel Electronics, an ESDM firm that has contributed to marquee programs including Jaguar, Sukhoi, LCA Tejas, and Chandrayaan-3.

Sanlayan is currently developing AESA Radar systems for India’s unmanned underwater vehicle (UUV) program, leveraging its in-house R&D capabilities. It has also formed partnerships with five Indian startups and foreign OEMs to jointly develop cutting-edge solutions.

“Sanlayan’s ability to execute at both operational and strategic levels has been outstanding. The revenue ramp-up at Dexcel, combined with strategic capital and Sanlayan’s operating discipline, reinforces our confidence in their ability to scale sustainably across the defence electronics value chain,” said Rishab Malik, Partner at Jungle Ventures.

The Bengaluru-based startup says it follows a unique, three-pronged approach to capability development: acquiring and building upon established Indian defence MSMEs; developing in-house technologies; and forging global alliances. With fresh access to capital, the startup aims to double down on this approach and contribute to programs of national strategic importance.

“What drew us to Sanlayan was their clear understanding of India’s defence electronics landscape and their hybrid strategy to address it. This is not just a business opportunity; it’s a national imperative. We’re proud to back a team that’s accelerating indigenous capability and contributing meaningfully to India’s national security,” said Ashish Kacholia.

Sanlayan plans to increase its engineering headcount fivefold over the next six months. The startup is actively hiring domain experts, R&D scientists, retired armed forces veterans, and senior leadership from both public sector undertakings and private defence companies.

“India’s defence sector is at a once-in-a-generation inflection point. We will continue to acquire capabilities both organically and inorganically. We are allocating capital for suo motu development of critical technologies for CUAS and EW systems. In the last six months, we have strengthened Dexcel’s design and manufacturing capabilities and are now gearing up to execute large-scale indigenisation and upgrade programs,” said Rohan Gala, Co-founder & CEO of Sanlayan.