Exclusive: IG Defence Raises $5 Mn To Scale Up Indigenous Drone Tech
Defencetech startup IG Defence has secured $5 million (approximately ₹46.2 crore) in its ongoing Pre-Series A funding round. The investment comes from India Accelerator, Finvolve, and several family offices. This development is significant as it underscores the growing interest in indigenous drone technology within India, particularly for defence applications.
IG Defence and Its Evolution
Founded in 2018 by VSSUT alumni Bodhisattwa Sanghapriya and Om Prakash, IG Defence, formerly known as IG Drones, focuses on building drones for both defence and civil use. The startup gained prominence during Operation Sindoor, where it partnered with the Indian government to supply FPV striker drones for military operations. The recent funding round, raised at a post-money valuation of ₹422 crore ($45 million), aims to bolster its capabilities further.
IG Defence has reported a remarkable 330% year-on-year revenue increase in FY25, reaching ₹22.4 crore from ₹5.17 crore in FY24. The company targets ₹100 crore in revenue for FY26, driven by a mix of government and private sector contracts. A significant portion of its growth is attributed to its defence contracts, reflecting a 60:40 revenue split between government and private clients.
Context and Competition in the Funding Environment
The Indian startup ecosystem has seen a surge in interest in defence technology, with companies like IG Defence leading the charge. The startup’s ability to attract investment amid a competitive funding environment highlights the strategic importance of indigenous technology solutions in national defence.
IG Defence has been in discussions to raise fresh capital for some time, initially aiming for $10 million. The successful closure of half that amount indicates strong investor confidence despite the challenging economic climate. The funds are expected to support the development of new products and expand manufacturing capabilities, including the ambitious Project KAL—an indigenous one-way attack unmanned system.
Implications for India’s Startup Ecosystem
The success of IG Defence reflects a broader trend of increasing investment in India’s defence technology sector. As the government pushes for self-reliance in defence capabilities, startups like IG Defence play a crucial role in providing home-grown solutions. This aligns with national initiatives to reduce dependency on foreign technology and enhance domestic manufacturing.
The startup’s recent contract with the Indian Army and its expansion in manufacturing capacity to produce up to 1 lakh FPV drones underscore the potential for growth in this sector. With 80% of the FPV drone contracts in India, IG Defence is well-positioned to capitalize on the increasing demand for innovative defence solutions.
Looking Ahead
IG Defence’s immediate focus will likely be on scaling its operations and fulfilling existing contracts. The company aims to continue raising capital to support its ambitious revenue targets and product development initiatives. As India accelerates its push for indigenous defence technologies, IG Defence’s progress will be closely watched by investors and industry stakeholders alike.
