ideaForge Picks Up Stake In GalaxEye To Build Drone-Based Sensors For Fog, Foliage Penetrations

Drone manufacturer ideaForge has bought an undisclosed stake in Bengaluru-based spacetech startup GalaxEye Space for INR 8.28 Cr.

In an exchange filing on Wednesday (July 10), ideaForge said that it has inked a deal with GalaxEye Space Solutions to acquire its Series A Compulsory Convertible Preference Shares worth INR 8.28 Cr.

“We hereby inform you that the Company has entered into a Share Subscription Agreement and a Shareholders’ Agreement on July 10, 2024 with GalaxEye Space Solutions Private Limited for acquiring Series A Compulsory Convertible Preference Shares of GalaxEye Space Solutions Private Limited at a total consideration of INR 8,28,72,720,” the filing said.

The acquisition will help ideaForge develop drone-based sensors for fog and foliage penetrations, the company added.

Founded by Suyash Singh, Denilm Chawda, Pranit Mehta and Rakshit Bhatt in 2021, GalaxEye provides multi-sensor imagery via satellites, providing insights by bringing imaging data from space.

It claims to be building the world’s first multi-sensor imaging satellite. This satellite is intended to provide geospatial analyses to governments, defense, and industries. 

The development comes months after ideaForge and GalaxEye have reportedly signed an agreement to jointly develop an unmanned aerial vehicle with Foliage Penetration Radar. 

Founded in 2007 by Ankit Mehta, Ashish Bhat, Rahul Singh, Vipul Joshi, ideaForge is a drone manufacturing startup that makes UAV systems for inspection, surveillance and mapping. Its offering has utility in sectors such as defence, homeland security, mining, construction, agriculture, energy and utilities.

Shares of ideaForge on Thursday’s session were trading 2.7% up at INR 816 at 11.20 AM on the BSE.

This is the latest among the several endeavors taken by the company lately. For instance, it expanded its ESOP pool size for its employees in June.

In the same month, Venture capital firm Celesta Capital also offloaded 3.57 Lakh shares of drone manufacturer IdeaForge in a block deal for INR 27.46 Cr. 

Earlier this year, the company also outlined that it will be entering the US market to tap on the opportunity created by America’s reluctance to buy drones from China. 

In terms of its financial health, ideaForge witnessed a 30% decline in its consolidated profit after tax (PAT) to INR 10.3 Cr in Q4 of FY24 from INR 14.8 Cr in the previous quarter, partially hurt by a sharp jump in spending towards inventories and employee benefits.

The startup posted a net loss of INR 5.4 Cr in Q4 FY23. Its operating revenue saw a 12.5% quarter-on-quarter (QoQ) increase to INR 102.3 Cr in the reported quarter. This was also an over 164% jump from INR 38.7 Cr operating revenue reported in Q4 FY23.

The startup was listed in June last year with a premium of 94% to its IPO price. Its IPO comprised an offer for sale (OFS) component of 48.7 Lakh shares and a fresh issue of shares worth INR 240 Cr. 

It is pertinent to note that spacetech sector is among the most burgeoning sectors in India with as many as 100 spacetech startups getting registered with the Indian Space Research Organisation (ISRO) last year. On the investment front, the sector garnered $233 Mn in funding across 30+ deals between 2014 and July 2023. 

According to Inc42’s Indian Spacetech Startup Landscape & Market Opportunity Report 2023, the spacetech sector is estimated to reach a market size of $77 Bn by 2030.

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