Big news for India’s defence tech space! Vayudh, an indigenous defence-tech startup has raised USD 10 million (~INR 85 crore) in a funding round led by Dharana Capital with participation from Deepinder Goyal (Founder and CEO, Eternal Ltd, formerly Zomato), Ajay Aggarwal (Managing Director, Action TESA), Sumit Jalan, LetsVenture and Navam Capital.
Founded in 2016 by Tanmay Bunkar, Anuj Barnwal and Dr Sarita Ahlawat, Vayudh is the defence vertical of BotLab Dynamics, an IIT Delhi-incubated company. Vayudh builds indigenous UAV platforms for real-time battlefield intelligence, surveillance and reconnaissance (ISR) missions.
Funds to be Used Strategically
Vayudh announced that the newly secured capital will be used to:
- Deepen R&D capabilities
- Expand its manufacturing infrastructure
- Accelerate deployment of its drone systems with the Indian defence forces
“This funding marks a pivotal step in our journey to develop indigenous, cutting-edge defence drone technology of global standards,” said Tanmay Bunkar, CEO and Co-founder of Vayudh. “We remain focused on scaling manufacturing and addressing the growing demand from India’s defence sector.”
Technological Edge & Field Experience
Vayudh is known for its work in swarm drone technology with over 3,00,000 autonomous flying hours across defence and commercial applications like industrial surveys and drone shows.
In 2023, the company received iDEX (Innovations for Defence Excellence) grant from Indian Ministry of Defence to develop India’s smallest surveillance drone. Recently Vayudh launched Atri, India’s first nano-class drone for precision ISR in high risk areas.
Investor Confidence & Sector Outlook
Vamsi Duvvuri, Founder and Managing Partner at Dharana Capital said, “India’s defence spend is increasing and indigenisation is the buzzword. We have a rare window to build world class defence tech in India. The Vayudh team brings exceptional technical depth—their swarming tech is field-tested, mission-ready, and proudly built in India.”
Echoing similar sentiments, Mathew Cyriac, Founder of Florintree Advisors (a previous investor in Vayudh), said, “What excites us is the team’s deep technical rigour and relentless drive to address India’s defence needs through home-grown intellectual property.”
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A New Star in Indian Drone Space
Vayudh joins the growing list of Indian drone tech startups including ideaForge, Garuda Aerospace, Marut Drones, DroneAcharya as the country is focusing on boosting UAV capabilities through policy support, grants and production linked incentives.
Indian drone market is going to grow big time, from USD 654 million in 2024 to USD 1,437 million by 2029, at a compound annual growth rate (CAGR) of 17.0% during this period. In terms of volume, the number of drones in the market is expected to rise from 10,803 units in 2024 to 61,393 units by 2029.
As India is pushing for self reliance in defence technology, startups like Vayudh will play a big role in transforming modern warfare and national security strategy through innovation and execution excellence.