New Delhi, June 26 -- US-based venture capital firm General Catalyst has led a $100 million (about Rs 860 crore) funding round in Indian drone manufacturing company Raphe mPhibr Pvt Ltd, the largest funding round in the space, as the country's demand for drones and military hardware increases.

The round saw participation from existing investors such as Amal Parikh, Think Investments, and other high-net-worth family offices. To date, Raphe has raised $145 million in capital, the Noida-based company said in a statement.

The latest funding round comes nearly one year after Raphe secured Rs 120 crore in a funding round from Think Investments and others, according to VCCEdge, the data research platform of VCCircle.

"Raphe mPhibr is uniquely positioned to develop cutting-edge aircrafts and UAVs given their robust, end-to-end design, engineering, and manufacturing capabilities," said Shashin Shah, managing partner, Think Investments. "This investment underscores our conviction that it will emerge as one of the foremost aerospace companies in India," Shah said.

Raphe was founded in 2016 by Vivek Mishra and Vikash Mishra. It makes operational drone swarms, high-altitude logistics platform for resupply in remote forward areas, a platform for maritime patrol, and lightweight internal combustion engines. The company has a team of over 600 members and has partnered with global defence companies like Dassault Systemes, HENSOLDT, and Safran.

For the financial year ended March 2024, the company's revenue from operations more than doubled to Rs 83.5 crore from Rs 40.5 crore in the prior year, according to VCCEdge. Its net profit in FY24 rose 68% to around Rs 9 crore versus Rs 5.3 crore the year before.

"What sets this team apart is their unwavering, mission-driven ethos, coupled with an expansive vision and formidable technological depth. The products emerging from Raphe mPhibr are already making a tangible impact on the ground, signalling what we believe will be a monumental shift," said Neeraj Arora, managing director at General Catalyst.

With the rising demand for drones for commercial and military purposes, many investors are betting on the growth potential of companies and startups in the sector in recent years. In April, Venture Catalysts invested Rs 100 crore in Chennai-based drone maker Garuda Aerospace at a post-money valuation of $270 million.

Published by HT Digital Content Services with permission from VC Circle.