Chennai-based drone technology firm Garuda Aerospace has raised ₹100 crore (approximately US$11 million) in a Series B funding round led by Venture Catalysts, with participation from other undisclosed investors. The funding values the company at a post-money valuation of US$250 million.
Garuda Aerospace plans to use the new funds to expand its drone production facilities and enhance research and development, further strengthening its role in India’s growing drone sector.
Rapid Growth Since 2015
Founded in 2015 by Agnishwar Jayaprakash and Rithika Mohann, Garuda Aerospace manufactures drones for a variety of uses, including defense, agriculture, logistics, and security. The startup also offers drones-as-a-service and has trained over 100,000 drone pilots—a testament to its strong commitment to skill development.
The company currently operates 400 drones in 84 cities across India. In FY24, it reported revenues of ₹110.8 crore (US$13.3 million) and profits of ₹15.8 crore (US$1.9 million), signaling the commercial viability of drone services at scale.
India’s Drone Evolution
India’s drone journey began with military applications in the 1990s, when Israeli-made drones were used for surveillance during the Kargil War. The 2010s saw a shift toward civilian and commercial uses, supported by government reforms such as the Drone Rules 2021, which created a friendlier regulatory environment.
Today, India has about 20,000 registered drone users, and the drone industry is expected to reach US$13 billion by 2030, growing at a 21% CAGR from 2022 to 2030. The sector could contribute 1% to 1.5% to India’s GDP and create as many as 500,000 jobs.
Symbol of India’s Self-Reliance Push
Garuda’s success mirrors India’s push for self-reliance in drone technology, moving away from foreign imports toward indigenous innovation and manufacturing. The company’s partnerships with industry giants like Tata and Reliance, along with various government agencies, show the widespread acceptance of drones across sectors.
This new funding round follows a US$3 million bridge round in 2023, showing continued investor confidence despite a tough funding climate for startups in India.
Future Outlook
With strong revenue, a growing pilot training ecosystem, and expanding operations, Garuda Aerospace is positioned as a leading player in India’s drone revolution. The new capital will help it scale faster, innovate more, and continue contributing to India’s economic and technological landscape.
