Newspace Secures Record $52 Million Funding, Leads Indian Defence Innovation

• ByStartupStory     |    March 1, 2024

Newspace Research & Technologies (NRT), a leading Indian defence drone manufacturer, has achieved a significant milestone by raising $52 million in a bridge round, marking the largest equity raise for an Indian defence startup. 

The funding comprises $33 million in equity from notable investors and $19 million in debt facilities from SBI’s startup hub and SIDBI. According to sources familiar with the development, “more than 40% of the current investment has been made by existing investors.” 

NRT specializes in swarm drone technology and collaborates with the Ministry of Defence, aiming for global expansion. Ranjan Pai, chairman of Manipal Group, expressed his confidence in NRT’s capabilities, stating, “I was impressed with the speed at which the leadership has built capabilities.” 

Beyond India, NRT has demonstrated swarm drone operations in Japan and is eyeing expansion in Japan, Middle East, Europe, and the US. Julius Amrit, co-founder and COO of NRT, highlighted the company’s global ambitions, stating, “It’s not an easy path, but the timing for an Indian company to be amongst the top five in this industry transformation across the world couldn’t be better.” 

The government’s initiatives such as Make in India, changes in Defence Acquisition Procedure (DAP), and schemes like Innovation for Defence Excellence (iDEX) have fueled the growth of the defence and aerospace ecosystem, attracting startups and larger companies alike. 

Sridhar Rampalli, managing partner of Pavestone Technology Fund, emphasized the potential impact of deep technologies from defence startups, stating, “We are convinced that in the next 4-5 years, deep technologies coming out of defence startups will create a strong impact in businesses worldwide.”

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