SUMMARY
Garuda Aerospace raised funding from a large infra development company, a group of HNI and angel investors from India, UAE and Singapore
The startup will utilise the funds to build advanced drone solutions for the armed forces in collaboration with global giants from the defence and aerospace sectors
Earlier this year, cricketer Mahendra Singh Dhoni invested an undisclosed amount in the Chennai-based startup
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Drone startup Garuda Aerospace has secured $5 Mn in funding from a large infra development company, a group of HNI and angel investors from India, UAE and Singapore.
The startup will utilise the funds to build advanced drone solutions for the armed forces in collaboration with global giants from the defence and aerospace sectors.
Founded in 2015 by Agnishwar Jayaprakash, Garuda Aerospace is a drone-as-a-service (DaaS) startup that designs, builds, and customises drones for multiple-use applications. It is focused on developing low-cost drone solutions to optimise industries through accurate data.
It has inked long-term partnerships with Lockheed Martin, Elbit Systems, Indian Institute of Science, IIT-M, and MIT Boston. Garuda Aerospace currently claims to have a drone fleet of 400 drones and a team of more than 500 pilots across 26 different cities.
“Garuda Aerospace is an asset-light, recession-proof, and market-agnostic company that is backed by its consumers. At a time when other unicorn startups are downsizing, Garuda is hiring because growth is based on profitability, sustainability and revenues. We have a stellar order book in contracts with three years of exclusivity, thus being cash positive. We have a 24% net profit margin,” Agnishwar Jayaprakash, founder and CEO of Garuda Aerospace, said.
Earlier this year, cricketer Mahendra Singh Dhoni invested an undisclosed amount in the Chennai-based drone startup and also joined the startup as a brand ambassador.
Buoyed by the government’s push to increase the use of drones in agriculture and other sectors in the country, a lot of drone startups have emerged in the country. India has witnessed a 34.4% surge in the number of drone or UAV startups between August 2021 (157 startups) and February 2022 (221 drone startups).
The Centre has also approved a production linked incentive (PLI) scheme for drone and drone component makers to boost production in the country. Besides, it has also liberalised regulations surrounding drones to incentivise drone manufacturers.
As a result, the drone space has seen a lot of deals in recent times. Recently, drone startup Skye Air raised around $1.7 Mn in a seed funding round led by Chiratae Ventures. Another Chennai-based drone startup Dhaksha Unmanned Systems received funding from venture capital firm Dare Ventures.
Many corporate houses have also entered the drone space. In May this year, Adani Enterprises’ subsidiary Adani Defence Systems and Technologies acquired a 50% stake in General Aeronautics in an all-cash deal. In the same month, RattanIndia Enterprises acquired a 60% stake in Bengaluru-based drone manufacturing startup Throttle Aerospace Systems.
According to a July 2021 report by BIS Research, the global drone market was estimated to reach $28.47 Bn in FY22, with India likely to account for 4.25% share. The Civil Aviation Ministry estimates India’s drone sector to achieve a total turnover of INR 12,000-15,000 Cr by 2026.
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