Dronetech Startup Vayudh Bags $10 Mn From Dharana Capital, Others

Defence-focussed dronetech startup Vayudh has raised $10 Mn (around INR 83.5 Cr) in an undisclosed funding round led by Dharana Capital.

The round also saw participation from Zomato founder Deepinder Goyal, LetsVenture and Navam Capital, among others.

Founded in 2016 by Tanmay Bunkar, Anuj Barnwal, and Sarita Ahlawat, Vayudh is a subsidiary of BotLab Dynamics. The startup develops indigenous drone platforms for battlefield intelligence, surveillance and reconnaissance operations.

“This funding will help us develop indigenous defence drone technology. We will focus on deepening our R&D pipeline and scaling manufacturing to meet demand from India’s defence sector,” said Bunkar.

Vayudh claims to have developed expertise in swarm drone technology with over 300,000 autonomous flying hours in defence and commercial applications. 

In 2023, the startup received the iDEX (Innovations for Defence Excellence) grant to develop India’s smallest surveillance drone.

The company recently launched Atri, a nano-class surveillance drone designed for precision surveillance and reconnaissance operations.

The sector has seen increased government support with the production linked incentive scheme for drones and the ‘Namo Drone Didi’ scheme to boost adoption in agriculture. 

The GST Council is also reportedly looking to finalise a uniform 5% GST rate on all commercial-use drones, down from the current variable rates of 5%, 18%, and 28% for different categories.

Other players in the drone space include listed companies like ideaForge and DroneAcharya, and startups such as TechEagle, Marut Drones, General Aeronautics, and Garuda Aerospace.

The funding comes amid strong investor interest in India’s drone sector. Garuda Aerospace secured INR 100 Cr ($11 Mn) last week, in a Series B round led by Venture Catalysts at a $250 Mn valuation. In January 2025, BonV Aero raised INR 10 Cr from Unicorn Ventures India, expanding its capabilities in heavy-lift eVTOL vehicles. 

November 2024 saw two significant investments, Marut Drones raised $6.2 Mn from Lok Capital to scale its agricultural drone operations and boost manufacturing capacity to 3,000 drones annually, while Airbound secured $1.7 Mn in a seed round led by Lightspeed for its delivery drone technology.

The Indian drone market is expected to reach $13 Bn by 2030, growing at a CAGR of 21% between 2022 and 2030, according to Inc42’s Indian Drone Tech Startup Landscape & Market Opportunity Report 2024.