Aerodyne: Can it remain Malaysia’s drone jewel?

Since Grab moved its headquarters to Singapore, Malaysia has been on a quest to churn out its next unicorn. The country has set a target to raise five companies with valuations north of US$1 billion by 2025.

One name that’s on the lips of ecosystem stakeholders – including policymakers – is Aerodyne.

The drone specialist has made headlines for being a Malaysian champion that has a presence abroad, defying the “jaguh kampung” label, a jibe in the Malay language aimed at local firms that can’t compete overseas despite enjoying privileges at home.

Aerodyne is the no. 1 drone service provider in the world, according to market research firm Drone Industry Insights (DII).

Since it was launched, the firm has closed a few funding rounds, drawing in a multinational roster of institutional investors. Even VentureTech, a unit under the Malaysian Industry-Government Group for High Technology, jumped on the bandwagon and provided a 20 million ringgit (US$4.8 million) investment for the company to expand its drone business.

More importantly, the firm’s meteoric rise has influenced policymakers to improve regulations, such as launching a sandbox program for drone tech hopefuls, which in turn has spurred the growth of the local drone industry.

DII estimates that by 2025, the drone tech sector will register US$127 billion worldwide and US$300 million in Malaysia specifically.

And it’s easy to understand this hype: Commercial drone services can be used in a wide range of areas – from asset inspection, agriculture, logistics, to security and surveillance.

Besides having ample land, Malaysia is home to a few drone test sites, and many of its key sectors – such as infrastructure and oil palm – have begun to rely on drone technology, primarily due to Covid-19 restrictions that have caused an acute labor shortage.

But amid these tailwinds, can Aerodyne continue to be the darling of the drone tech scene?

Aerodyne group CEO Kamarul A. Muhamed tells Tech in Asia in an email interview that in the beginning, building the company with a “limited budget and local resources” was a major challenge.

Growth engines

Competition heats up

Navigating regulatory hurdles

Still tricky to navigate

IPO on track

Room to grow