Chennai-based drone startup Garuda Aerospace, notably backed by cricket legend MS Dhoni, successfully raises ₹100 crore in its Series B funding round. As a result, the company’s valuation now stands at $250 million. The round, moreover, was led by early-stage investment firm Venture Catalysts (VCAT), further reinforcing India’s growing position as a global powerhouse in drone technology.
Founded in 2015, Garuda Aerospace has emerged as a pivotal player in India’s drone ecosystem. With a portfolio of over 30 drone types, the company supports both civilian and defence applications. Currently operating a fleet of 400 drones across 84 cities, it has catered to over 750 clients, including government agencies and corporate giants like Tata, Adani, Reliance, and Flipkart.
The newly secured capital will help Garuda scale its existing manufacturing plant and fast-track the development of a cutting-edge R&D and testing center. A major chunk of the funds will also fuel indigenisation efforts, targeting 85% local component production to reduce import dependency. Additionally, Garuda will expand its intellectual property (IP) portfolio, currently boasting 20+ patents, as part of its long-term innovation strategy.
CEO Agnishwar Jayaprakash emphasized that this fundraise is a “defining milestone” for the company as it ramps up towards global expansion and strengthens India’s Atmanirbhar Bharat defence vision. Meanwhile, Dr. Apoorva Ranjan Sharma, Managing Director at VCAT, underlined their commitment to backing homegrown champions capable of reshaping India’s tech future.
Garuda Aerospace’s revenue trajectory further strengthens this momentum. In FY24, the company reported revenues of ₹110.8 crore alongside a net profit of ₹15.8 crore. Building on this solid foundation, it now targets 2–3x growth in FY25–26. As India continues accelerating its drone-related reforms, Garuda, in turn, is positioning itself to lead the charge—both domestically and on the global stage.
1. Introduction: Garuda Aerospace raises Rs 100 crore funding in Series B
1.1 MS Dhoni-backed startup strengthens its financial muscle
MS Dhoni-backed Garuda Aerospace raises ₹100 crore funding. Garuda Aerospace, India’s leading drone tech startup, successfully raises ₹100 crore in a Series B funding round led by Venture Catalysts. As a result, the round catapults the company’s valuation to $250 million, thereby highlighting strong investor confidence in its potential to revolutionize drone manufacturing.
1.2 Backing from cricket icon MS Dhoni
What sets Garuda apart is its association with iconic cricketer MS Dhoni, who has been an active supporter and brand ambassador. This celebrity backing has helped the company capture mainstream attention and added significant brand value in a nascent but fast-growing drone ecosystem.
2. Scaling Indigenous Manufacturing for Defence and Agriculture
2.1 Facility expansion and R&D centre in Chennai
Currently, Garuda Aerospace is operating a 24,000 sq. ft. facility in Chennai. Now, with the fresh capital, the company plans to establish a new 35,000 sq. ft. plant adjacent to the existing one. Consequently, this expansion will double its drone production capacity from 10,000 units annually. Moreover, the new facility will focus on subsystem and component-level production, thereby reducing external dependency and enhancing self-reliance.
2.2 Advanced R&D and innovation center
Alongside manufacturing, the company is also fast-tracking a state-of-the-art R&D and testing center to design next-gen defence drone systems. This includes investment in proprietary technologies, enhancing indigenous capabilities and supporting India’s broader Atmanirbhar Bharat initiative.
3. Revenue Surge and Financial Growth
3.1 Robust performance with profitability
According to data from Tracxn, Garuda Aerospace reported Rs 110.8 crore in revenue for FY24, with a net profit of Rs 15.8 crore. Operating with 30–32% gross margins, 24% EBITDA, and 15% PAT, the startup’s asset-light and scalable model has helped maintain strong financial health.
3.2 Projected 2–3x growth in FY25–26
With government orders steadily increasing, defence contracts expanding, and export opportunities opening up, Garuda is now projecting 2–3x revenue growth in the coming fiscal. Furthermore, the firm’s growing alignment with government schemes and production-linked incentives (PLI) is adding significant tailwinds to its aggressive scaling roadmap. As a result, Garuda is positioning itself at the forefront of India’s drone revolution.
4. Building India’s Largest Drone Ecosystem
4.1 India’s largest commercial drone fleet
Currently, Garuda operates over 400 drones across 84 cities. Moreover, it has trained 500 pilots and serves more than 750 clients. In addition, the company offers Drone-as-a-Service (DaaS), remote pilot training, and tailor-made solutions across sectors such as agriculture, infrastructure, logistics, and surveillance.
4.2 Collaborations with industry giants
Garuda’s client list includes names like Tata, Godrej, Adani, Reliance, Flipkart, NTPC, and NHAI. The startup has also entered into strategic partnerships with global players such as Lockheed Martin, Cognizant, and Elbit Systems. These partnerships position it as a key global contender in the drone tech space.
5. Policy Tailwinds and Government Support
5.1 PLI scheme and Drone Rules 2021
India’s Drone Rules 2021 and the PLI scheme for drones have fueled rapid sectoral growth. Garuda Aerospace is among the few startups that have secured DGCA approvals for both Type Certification and Remote Pilot Training Organisation, making it a regulatory pioneer.
5.2 Vision 2030: India as the drone hub
According to NITI Aayog, the Indian drone market could reach $15 billion by 2030. Garuda aims to lead this charge with its focus on innovation, affordability, and indigenous production. The startup plans to localize 85% of its drone components by mid-2025, reducing import reliance and bolstering national security.
6. Founders and Investor Vision
6.1 CEO Agnishwar Jayaprakash’s statement
Calling the funding a “defining milestone,” Agnishwar Jayaprakash, Founder & CEO, reiterated that the funds would catalyze manufacturing, innovation, and global expansion. He also emphasized the company’s role in India’s economic and technological rise.
6.2 Venture Catalysts’ perspective
Meanwhile, Dr. Apoorva Ranjan Sharma, Co-founder and MD of VCAT, referred to Garuda as a ‘homegrown champion.’ Furthermore, he emphasized that the company perfectly aligns with VCAT’s mission of driving technological transformation and fostering socio-economic impact. Consequently, he expressed strong confidence that Garuda will position India as the global drone hub by 2030.
7. Learnings for Startups and Entrepreneurs
7.1 Embrace strategic capital and sustainable scaling
Garuda’s funding journey shows the importance of raising capital not just for survival but for sustainable innovation. Startups must align funding with clear manufacturing and growth goals, especially in deep-tech segments like defence and hardware.
7.2 Partnerships and policy alignment are key
By collaborating with industry leaders and complying with government schemes, Garuda has, thus, built both credibility and scale. Consequently, founders must leverage policy incentives and establish public-private alliances to thrive in regulated markets.
7.3 Intellectual property is a long-term asset
Garuda’s focus on expanding its IP portfolio offers a crucial lesson. Building and protecting intellectual capital in high-tech sectors enhances both valuation and defensibility.
Conclusion: Garuda Aerospace leads India’s drone revolution
Garuda Aerospace’s latest fundraise, therefore, cements its position at the forefront of India’s drone innovation landscape. With a growing focus on defence, agriculture, and indigenisation, the startup is, thus, well-poised to help India emerge as a global drone superpower. Moreover, its strategic scaling, powered by MS Dhoni’s support and Venture Catalysts’ capital, is, in turn, setting the stage for a high-impact growth story.
Stay tuned to The Startups News for more updates on India’s drone evolution and the most disruptive innovations shaping the future of tech entrepreneurship.
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