Chennai-based drone technology startup Garuda Aerospace has raised 100 crore rupee (US$11 million) in a series B funding round led by Venture Catalysts.

The round also included participation from undisclosed investors. The company announced that the funding was secured at a post-money valuation of US$250 million.

Garuda Aerospace plans to use the funds to expand its production facilities and enhance research and development efforts.

Founded in 2015 by Agnishwar Jayaprakash and Rithika Mohann, Garuda Aerospace manufactures drones for various applications, including defense, agriculture, security, and logistics.

The startup also provides drones-as-a-service solutions and has trained over 100,000 individuals as drone pilots.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ India’s drone journey: From military surveillance to multi-billion dollar industry

Garuda Aerospace’s successful funding represents a broader evolution in India’s drone sector that began in the 1990s when drones were primarily acquired from Israel for military reconnaissance during the Kargil War 1.

This military-to-commercial transition gained momentum in the 2010s, with regulatory reforms like the Drone Rules 2021 creating a more favorable environment for civilian applications across agriculture, infrastructure monitoring, and logistics 2.

The sector now hosts approximately 20,000 registered drone users in India, demonstrating rapidly growing adoption across multiple industries 3.

Market projections show the Indian drone industry is expected to reach US$13 billion by 2030, growing at an impressive 21% CAGR between 2022-2030, potentially contributing 1-1.5% to India’s GDP and creating around 500,000 jobs 4.

The transition from imported to indigenous drone technology aligns with India’s self-reliance goals, with companies like Garuda exemplifying this shift through local manufacturing and R&D capabilities.

2️⃣ Garuda’s operational metrics reveal drone sector’s commercial viability

Beyond the headline funding news, Garuda’s operational performance provides concrete evidence of drone technology’s commercial potential in India.

The company operates 400 drones across 84 cities and reported substantial FY24 revenues of Rs 110.8 crore (US$13.3 million) with profits of Rs 15.8 crore (US$1.9 million), demonstrating that drone services can be profitable at scale 5.