Venture Catalysts led a series B fundraising round that secured 100 crore rupees (US$11 million) for Chennai-based drone technology firm Garuda Aerospace.

Investors that were not identified also participated in the round. According to the corporation, the cash was obtained at a post-money valuation of $250 million USD.

The money will be used by Garuda Aerospace to improve research and development activities and grow its production facilities.

Garuda Aerospace, which was founded in 2015 by Agnishwar Jayaprakash and Rithika Mohann, produces drones for a range of uses, such as logistics, security, agriculture, and defense.

The business has taught more than 100,000 people to fly drones and offers drones-as-a-service options.

India’s drone adventure: From military surveillance to a multibillion-dollar sector

The successful funding of Garuda Aerospace is part of a larger development in India’s drone industry, which started in the 1990s when Israel was the main supplier of drones for military reconnaissance during the Kargil War.

In the 2010s, this military-to-commercial shift accelerated as a result of regulation changes like as the Drone Rules 2021, which improved the conditions for civilian uses in logistics, infrastructure monitoring, and agricultural.

In India, there are currently about 20,000 registered drone users, indicating the industry’s quickly expanding usage across several industries.

According to market estimates, the drone market in India is predicted to develop at a remarkable 21% CAGR from 2022 to 2030, reaching US$13 billion. It may potentially contribute 1–1.5% of India’s GDP and generate about 500,000 employment.

Companies like Garuda, which have local manufacturing and research and development capabilities, are prime examples of how the change from imported to domestic drone technology fits with India’s aspirations for self-reliance.

Garuda’s operational metrics demonstrate the commercial feasibility of the drone industry

Beyond the high-profile investment announcement, Garuda’s operational results offer verifiable proof of drone technology’s potential for Indian commerce.

As evidence that drone services may be lucrative at scale, the company, which runs 400 drones in 84 cities, announced impressive FY24 revenues of Rs 110.8 crore (US$13.3 million) with profits of Rs 15.8 crore (US$1.9 million).

Despite difficult overall funding conditions for Indian entrepreneurs, the company’s growth trajectory continues to inspire investor confidence, as seen by the US$11 million investment round that follows a US$3 million bridging deal in 2023.

Garuda’s assertion that it has trained more than 100,000 drone pilots demonstrates the potential for job creation as well as the sizable skills development ecosystem that is developing around drone technology.

The company’s wide range of customers, which includes partnerships with both government organizations and big businesses like Tata and Reliance, illustrates how widely drone services are accepted in both the public and private sectors.