Noida-based defence technology startup Raphe mPhibr has raised over ₹800 crore in a Series B funding round. That’s 100 million US dollars, in what’s being called India’s largest defence startup funding round ever.
The round was led by US-based venture capital fund General Catalyst. Investor Amal Parikh, another US-based VC fund Think Investments, and India’s leading family offices also participated in the funding for this 10-year-old defence tech startup. To date, the company has raised a total of 145 million US dollars.
Interest in the defence tech startup, which focuses on drone manufacturing, has surged following India’s Operation Sindoor against Pakistan. Reports suggest that Indian armed forces used Raphe mPhibr drones during the attacks on Pakistan.
Raphe mPhibr’s huge fundraise has also shifted the spotlight onto India’s defence drone manufacturers. India first used military drones, supplied by Israel, for reconnaissance during the Kargil War in 1999. Since then, India has procured numerous defence drones from Israel and other countries.
However, Operation Sindoor has shown us that the situation is changing, with drones becoming increasingly indigenous. Indian-made drones—including SkyStriker suicide drones built by an Adani Group joint venture in Bengaluru—were the stars of the Indian operation. Just days ago, the Indian Army placed an order worth ₹137 crore for ideaForge’s hybrid mini-UAVs.
This change has been years in the making. Initially, India lagged behind other major drone-manufacturing countries. We began our efforts to build defence drones in 1990, with the Defence Research and Development Organisation (DRDO) attempting to develop the ‘Nishant’ unmanned aerial vehicle.
But 2021 turned out to be a milestone year for India’s defence drone space. This was when all the stakeholders—the government, industry, and academia—came together to accord the sector top priority. One thing led to another. Soon, the Drone Rules were notified. This was followed by a manufacturing push, liberalised export regulations, and a ban on imports.
Simultaneously, interest from the private sector gathered momentum. In 2022, the Army Design Bureau signed an MoU with the industry body Drone Federation of India to collaborate on drone production. In the last four years, India’s defence drone companies have invested over ₹2,000 crore in research, development, and manufacturing.
Today, on one hand, we have industrial giants such as the Tatas and the Adanis betting big on this sector. On the other, startups like Raphe mPhibr are also making their presence felt.
Read more: Reliance calls ‘Operation Sindoor’ filing inadvertent, cites junior error
According to a Grand View Research report, the Indian defence drone market generated revenue of over $1.5 billion in 2024. In the next five years, it’s expected to treble to over $4 billion.
