Drone delivery startup Skye Air raises $4M in Series A funding round

Drone delivery startup Skye Air has raised $4 million in a Series A funding round led by Mount Judi Ventures and saw participation from Chiratae Ventures, Venture Catalyst, Windrose Capital, and Tremis Capital.

Additional investors included Faad Capital, Misfits Capital, Hyderabad Angels, Soonicorn Ventures, other existing investors, family offices, and angels.

Expanding last-mile delivery network

Skye Air plans to use the raised capital to expand its last-mile delivery network in Gurugram and other cities, targeting industries such as healthcare, e-commerce, and quick-commerce. 

The startup aims to grow its workforce to around 200 people in the next 18 months.

It also aims to integrate drone deliveries as a mainstream logistics solution, enhancing delivery efficiency and reducing time significantly, as evidenced by its successful BVLOS drug delivery flight in collaboration with Flipkart Health.

What does Skye Air do?

Founded in 2019 by Ankit Kumar and Chandra Prakash, Skye Air offers drone-based logistics solutions to various industries, including healthcare, e-commerce, quick-commerce, and agri-commodity.

The startup is also the creator of Skye UTM, an advanced unmanned traffic management system that manages drone traffic, ensures safety, and facilitates efficient communication between drones and air traffic controls.

How is the drone industry positioned in India?

The drone industry in India is poised for significant growth, driven by supportive government policies and increasing demand for efficient logistics solutions.

Apoorva Ranjan Sharma, Founder and Managing Director at Venture Catalysts, highlighted, "India’s vast and diverse terrain demands an efficient and innovative logistics system, and drone-based last-mile deliveries are at the forefront of this revolution."

“The current government’s policies governing the drone or UAV ecosystem, such as a ban on the import of drones to encourage local production and stringent drone certification processes to ensure safety and quality, has led to a surge in drone startups and significant investments in this futuristic logistics solution,” said Sharma.

According to a report by EY and FICCI, the drone and its components industry can boost India’s manufacturing potential to around $23 billion by 2030.

Sharma added that the industry is expected to grow from Rs 2,900 crore in 2020 to Rs 81,600 crore by 2025.