SUMMARY
The round comprises $33 Mn of equity from marquee investors and $19 Mn debt from SBI’s startup hub and SIDBI
Over 40% of the current investment comes from its existing investors
In February 2022, the startup raised $21 Mn in its first round and aims to become a unicorn within five years
NewSpace Research & Technologies (NRT), a drone manufacturer in India’s defence sector, has raised $52 Mn (INR 430.9 Cr) in a bridge round.
The round comprises $33 Mn of equity from marquee investors and $19 Mn debt from SBI’s startup hub and SIDBI, people aware of the development told ET.
NRT has welcomed three new venture capitalists on board—Cornerstone Venture Partners, 360 ONE Asset and Volrado Venture Partners. Over 40% of the current investment comes from its existing investors.
In February 2022, the startup raised $21 Mn in its first round and aims to become a unicorn within five years.
In the last two years, NRT delivered a swarming system to the defence ministry and set a global record for the highest altitude flight in a multirotor system. Recently, the company demonstrated a solar-powered UAV with a continuous 21-hour flight, a first for India. NRT is currently delivering a tethered system to the Indian Army.
Ranjan Pai, chairman of Manipal Group and an investor in the current round, said, “I was impressed with the speed at which the leadership has built capabilities and the potential of some of the dual-use technologies being built, especially in communication and logistics.”
Beyond the Indian market, NRT has global ambitions and has already demonstrated swarm drone operations in Japan as a first response capability for disaster management and is looking to expand its portfolio in Japan, Middle East and the US.
“It’s not an easy path, but the timing for an Indian company to be amongst the top five in this industry transformation across the world couldn’t be better,” Julius Amrit, cofounder and COO of NRT, told ET.
Based in Bengaluru, NewSpace’s 46-member team is building smart technologies for the next generation. Its website says the startup’s next-generation aerospace technology includes unmanned air systems, collective robotics, GPS denied operations, augmented reality, virtual reality, machine learning and artificial intelligence.
The increasing usage and demand for drones has resulted in several Indian startups emerging in the space in the last decade or so. According to Inc42’s Indian Drone Tech Startup Landscape & Market Opportunity Report 2023, the Indian drone market is predicted to reach a size of $13 Bn by 2030 from $2.71 Bn in 2022.
Garuda Aerospace, Marut Drones, BonV Aero, Skylark Drones, Skye Air Mobility, and Preimage are among some of the drone tech startups in the country.
Besides, the government also recognises the growing importance of drones and has taken a number of steps over the years to promote the industry and make India a drone hub by 2030.
The government’s Make in India initiative, changes in the Defence Acquisition Procedure (DAP) and schemes like the Innovation for Defence Excellence (iDEX) have given impetus to a defence and aerospace ecosystem that includes scores of startups and larger companies keen to tap into the long-term market.
“We are convinced that in the next 4-5 years, deep technologies coming out of defence startups will create a strong impact in businesses worldwide,” said Sridhar Rampalli, managing partner, Pavestone Technology Fund, a lead investor in the previous round told ET.
