New Delhi, April 16 -- Garuda Aerospace announced on Wednesday that it has secured Rs 100 crore ($11.7 million) in a Series B funding round from Venture Catalysts. The investment pegs the drone manufacturer's post-money valuation at $270 million, as it looks to ramp up its drone production capabilities.
This latest round comes nearly two years after the Chennai-based startup raised $22 million in a Series A round led by early-stage venture capital firm SphitiCap, which valued the company at $250 million. Among its backers is cricketer MS Dhoni, who also serves as the company's brand ambassador since 2022.
The fresh capital will be used to scale up manufacturing and expedite the completion of the Garuda Drone Park, a 35,000-square-feet R&D and testing facility developed in Chennai in collaboration with TATA Elxsi and other partners. The facility will focus on defence drone design and innovation.
"This Series B funding... not only strengthens our capacity to scale manufacturing and innovation but also positions us to accelerate the development of next-generation drone technology," Agnishwar Jayaprakash, founder and CEO of Garuda Aerospace, said in a statement.
Founded in 2015 by Jayaprakash and his wife Rithika Agnishwar, Garuda claims to operate India's largest drone fleet, with over 400 drones and 500 pilots active across 84 cities. The company manufactures 30 types of drones and offers 50 types of services, ranging from agriculture to defence applications.
Garuda has worked with over 750 clients, including large corporations such as TATA Elxsi, Godrej Agrovate, Adani Group, Reliance Industries, Swiggy, and Flipkart. It has also formed partnerships with international defence and technology giants like Lockheed Martin, Cognizant, and Israel's Elbit Systems.
Jayaprakash told VCCircle that for the financial year ended March 2025, the company's revenue from operations rose to Rs 122 crore. Garuda has done "fairly well" in maintaining gross margins of 30-32%, EBDITA margins of 24%, and PAT margins of 15%, he said.
"We have adopted a gradual and sustainable growth strategy, and not growth at all costs to acquire customers at a higher cost. Low marketing budgets and focus on lean contract manufacturing and system integration are main factors contributing towards our success, coupled with progressive government initiatives," Jayaprakash told VCCircle.
For the financial year ended March 2024, Garuda's revenue from operations more than doubled to Rs 109 crore, up from Rs 47 crore in the previous year, according to VCCEdge, the data research platform of VCCircle. Net profit surged 155% to Rs 15.8 crore from Rs 6.2 crore the previous year.
Looking ahead, the company expects revenue to grow 2-3x in FY26, fueled by government procurement under the Namo Drone Didi scheme, expansion into global markets, and increased defence orders.
Garuda plans to focus on local manufacturing and boost indigenously built offerings. "The challenges are to reduce dependency on foreign imports for critical components," Jayaprakash added.
Published by HT Digital Content Services with permission from VC Circle.