Backed by MS Dhoni, drone startup Garuda Aerospace secures ₹100 crore in Series B Funding from VCAT
When Garuda Aerospace launched in 2015 with a five-member team, few could have predicted the scale it would achieve in less than a decade. Now, India’s most valuable drone startup has secured ₹100 crore in Series B funding from Venture Catalysts (VCAT), pegging its valuation at $250 million. This isn’t just a financial milestone — it’s a strategic leap that will power Garuda’s ambition to become a global leader in indigenous drone manufacturing and defense innovation.
Garuda Aerospace, known for its expansive drone fleet and technological foresight, is preparing to elevate its production and research infrastructure. With more than 20 patents under its belt, the startup is allocating a portion of its new funds toward expanding its intellectual property and setting up a new design facility focused on advanced drone systems.
The move reflects its broader role in supporting India’s defense ambitions and the Atmanirbhar Bharat initiative. Alongside agricultural applications, Garuda is building systems with over 85% indigenous content despite facing supply challenges, further embedding itself into national priorities.
The Series B raise, at a $250 million pre-money valuation follows its previous $100 million valuation during the Series A round in 2022-23. Cricketer MS Dhoni, who joined as an investor and brand ambassador in September 2024, has seen the round close with substantial momentum.
Central to Garuda’s growth strategy is the new 35,000 sq ft Garuda Drone Park, developed with Tata Elxsi and other partners, which will act as a cutting-edge R&D and testing hub. This complements its manufacturing base in Chennai, forming the backbone of its hardware innovation ecosystem.
Garuda also partners with defense manufacturing stalwarts HAL and BEML and operates on a lean, asset-light model, resulting in impressive financials — 30-32% gross margins, 24% EBITDA, and 15% PAT. Revenues have soared from ₹2 crore in FY20-21 to a projected ₹122 crore in FY24-25, with a 2-3x growth forecast for FY25-26.
“This Series B funding is a defining milestone in Garuda Aerospace’s growth journey,” said Agnishwar Jayaprakash, Founder and CEO. “It not only strengthens our capacity to scale manufacturing and innovation but also positions us to accelerate the development of next-generation drones technology.”
Venture Catalysts sees similar promise. “The role Garuda is playing in strengthening India’s indigenous defense manufacturing ecosystem, while also creating a global footprint, is something that truly excites us,” said Apoorva Ranjan Sharma, Co-founder and MD of VCAT.
Garuda’s success story rides on India’s booming drone market, driven by applications across sectors and strong government support through policies like Drone Rules 2021 and the PLI scheme. The startup continues to diversify its client base — from Swiggy and Flipkart to NTPC and Lockheed Martin — while offering DaaS solutions and pilot training across 84 cities with a fleet of over 400 drones.
