Chennai-based drone manufacturer Garuda Aerospace has successfully raised ₹100 crore in a Series B funding round led by Venture Catalysts (VCAT), elevating its valuation to $250 million. This significant investment underscores the company’s rapid growth and its pivotal role in advancing India’s indigenous drone capabilities.
About Garuda Aerospace
Founded in 2015 by Agnishwar Jayaprakash, Garuda Aerospace is an Indian drone technology startup that designs, manufactures, and operates drones for diverse sectors such as agriculture, infrastructure, defense, surveillance, disaster management, and logistics. The company has positioned itself as a leading player in India’s drone ecosystem with a mission to provide affordable, efficient, and scalable drone solutions. Headquartered in Chennai, it operates across 84 cities, serving a range of clients from government agencies to private enterprises. The company also provides Drone-as-a-Service (DaaS) and pilot training programs, reinforcing its commitment to skill development and drone accessibility across the country.
Strategic Expansion and Innovation
Founded in 2015 by Agnishwar Jayaprakash, Garuda Aerospace has evolved from a modest five-member team into a leading player in the drone industry. The newly acquired funds are earmarked for expanding the company’s intellectual property portfolio and establishing a state-of-the-art design facility dedicated to advanced drone systems. With over 20 patents, including six international ones, Garuda’s innovations span agricultural applications, underwater inspections, medical deliveries, and surveillance technologies .
Collaborations Enhancing Indigenous Capabilities
In a notable partnership, Garuda Aerospace has joined forces with Tata Elxsi to set up a Centre of Excellence for Unmanned Aerial Vehicle (UAV) design and development. This collaboration aims to produce fully indigenous UAV systems, integrating AI and machine learning to enhance efficiency and reduce costs by over 20% . The initiative also seeks to accelerate UAV development cycles by up to six months, catering to sectors like defense, agriculture, and smart cities .
Financial Performance and Market Reach
Garuda Aerospace operates on a lean, asset-light model, achieving impressive financial metrics: 30-32% gross margins, 24% EBITDA, and 15% PAT. The company’s revenue has surged from ₹2 crore in FY20-21 to a projected ₹122 crore in FY24-25, with expectations of 2-3x growth in FY25-26. Its diverse clientele includes Swiggy, Flipkart, NTPC, and Lockheed Martin, reflecting its broad market reach .
Commitment to ‘Make in India’ and Defense Applications
Aligning with the ‘Atmanirbhar Bharat’ initiative, Garuda Aerospace emphasizes indigenous manufacturing, achieving over 85% local content in its drone systems despite supply chain challenges. The company collaborates with defense entities like Hindustan Aeronautics Limited (HAL) and Bharat Earth Movers Limited (BEML), contributing to India’s defense capabilities .
MS Dhoni’s Involvement
Indian cricket legend Mahendra Singh Dhoni, who became an investor and brand ambassador for Garuda Aerospace in September 2024, has played a significant role in the company’s brand visibility and outreach. His association underscores the company’s commitment to excellence and innovation in the drone sector.
Future Outlook
With the Indian government’s supportive policies, such as the Drone Rules 2021 and the Production-Linked Incentive (PLI) scheme, the drone industry is poised for substantial growth. Garuda Aerospace’s strategic initiatives and robust financial performance position it to capitalize on these opportunities, aiming to impact one billion lives through affordable precision drone technology .
As the company continues to innovate and expand, it stands at the forefront of transforming India’s drone landscape, contributing significantly to national priorities and technological advancements.
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