This startup gets funding to make drones in India for agriculture

Photo credit: Slate.

Aaruha Technologies, the early-stage technology fund started last year by ex-Infosys CFOs Mohandas Pai and V Balakrishnan, as well as BV Naidu, the chairman of Sagitaur Ventures, officially announced its second investment today.

This time, it’s placed its bets on Aarav Unmanned Systems (AUS), a startup that produces unmanned aerial vehicles, also known as drones.

The amount was undisclosed, but the press release did reveal that it was a bridge round. Bridge rounds are usually conducted between two different rounds of funding. Often, they happen because a startup wants a higher valuation before it raises its next one.

Startupxseed Ventures is the LLP investment manager that runs Aaruha. It explained that it’s invested in the startup because it aligns with the government’s initiative to focus on homegrown solutions that “make in India.”

Aaruha explains that it’s interested in AUS for three main reasons:

• It can help manage infrastructure better by surveying land
• Agricultural processes like irrigation, fertilization, and spraying pesticides can happen faster and more efficiently
• Data can be collected based on heat distribution to figure out whether power lines, solar power plans, and other large industries are working well

AUS’ site also claims that surveillance is another way to use its drones, although Aaruha makes no mention of that.

Drones in the morning, drones at night

Photo credit: Ed Schipul.

India is huge, which is why drones are an attractive – and terrifying – way to span the country.

CB Insights reported a 300 percent increase in drone startup funding around the world between 2014 and 2015. Seventy four drone startup deals were completed last year, for a total of US$450 million in equity money.

Last year, both Amazon and Flipkart announced they were thinking of using drones for deliveries in rural areas.

Skylark Drones is an Indian startup that makes drones but also provides end-to-end solutions to show enterprises what they can do with them. Skylark has even paired with the Bangalore police.