MS Dhoni-backed Garuda Aerospace raises Rs 100 crore in funding at $250 million valuation

Garuda Aerospace, the Chennai-based drone manufacturing startup, has raised Rs 100 crore in its Series B funding round, marking a valuation of $250 million.

The round was led by early-stage investor Venture Catalysts (VCAT) and is aimed at expanding the startup's domestic manufacturing capabilities and reinforcing its position in India's defence and industrial drone ecosystem.

Focused on scaling production capacity

The startup, which manufactures over 30 drone models for both civilian and defence applications, plans to use the capital to scale its current production facility and fast-track the completion of a cutting-edge R&D and testing centre dedicated to advanced defence drone design.

It is currently working on a new 35,000 sq ft production facility, to be set up alongside its existing plant in Chennai. The facility will focus on subsystem and component-level production to reduce reliance on imports and increase the indigenous value of its drones.

Garuda's market presence

Founded in 2015, Garuda Aerospace operates a fleet of 400 drones across 84 cities and has served more than 750 clients, including major corporate houses and government agencies. It offers drone-as-a-service (DaaS) solutions and remote pilot training and has been certified by India’s Directorate General of Civil Aviation (DGCA) for both drone type certification and training.

The startup claims to have built a portfolio of over 20 patents and aims to expand its intellectual property assets as it develops advanced drones for defence applications. It also plans to complete a state-of-the-art R&D and testing center dedicated to high-performance drone systems.

This latest investment follows a Rs 25 crore bridge round in October 2023 and a $22 million Series A in February 2023, which was one of the largest funding rounds in the Indian drone sector at the time.

Financial performance

According to Tracxn, Garuda Aerospace reported revenue of Rs 110.8 crore in FY24 and a net profit of Rs 15.8 crore, underscoring growing demand for drones across agriculture, logistics, surveillance, and infrastructure.

The funding comes as India pushes forward with production-linked incentives and policy reforms to boost indigenous drone manufacturing under the Atmanirbhar Bharat initiative. 

Leadership comments

Agnishwar Jayaprakash, Founder and CEO of Garuda Aerospace, said, “This Series B funding is a defining milestone in Garuda Aerospace’s growth journey. It not only strengthens our capacity to scale manufacturing and innovation but also positions us to accelerate the development of next-generation dronestechnology."

Dr. Apoorva Ranjan Sharma, Co-founder and Managing Director of VCAT, said, “We are immensely proud to lead this landmark Series B funding for Garuda Aerospace. This investment is closely aligned with our strategy of supporting homegrown champions that have the potential to transform India’s technological landscape and create a significant socio-economic impact...We firmly believe that in the years to come, Garuda Aerospace will emerge as a global leader in drone technology, making India the drone hub of the world by 2030.”