Latest news with #CornerstoneVentures
Mint
2 days ago
- Business
- Mint
NRT in talks to raise ₹450-crore Series B round from Cornerstone Ventures, others
NEW DELHI : Bengaluru-based defence startup NewSpace Research and Technologies Pvt. Ltd (NRT) is in talks to raise a ₹450-crore Series B round, led by Cornerstone Ventures, by the end of this year, said three people close to discussions. Founded in April 2017 by Sameer Joshi and Julius Amrit, the startup is currently raising a ₹267-crore bridge round, with about ₹140 crore already subscribed by existing investors. 'Cornerstone Ventures did not participate in the bridge round but plans to come in during the upcoming Series B," said one of the three people. The company has appointed LGT Wealth India, among others, as advisors to help with the fundraising, and the transaction is undergoing due diligence, the people said. 'The company has grown well over the last year as Operation Sindoor gave it an uptick for its Loitering Munition Systems (LMS) drones," said the second of the three people. In Operation Sindoor, India's precision strikes on terror camps in Pakistan in the aftermath of the Pahalgam terror attack, loitering munitions systems were deployed—with NRT's swarm drone technology reportedly playing a key role. Mint queries sent to NRT, Cornerstone, 360 One Asset, an investor in the company, and LGT Wealth India did not elicit a response. The fundraising comes as India's drone sector enters a high-growth phase. According to a FICCI-EY report, India's drone manufacturing potential is projected to grow from about $4.2 billion by 2025 to $23 billion by 2030, driven largely by defence, agriculture, logistics, and infrastructure demand. The study notes that defence applications—particularly swarm drones and high-altitude, long-endurance platforms—are expected to account for a significant share of this growth as India seeks to become a global drone hub. In expansion mode For 2023-24, NRT's revenue from operations stood at ₹96.25 lakh, down sharply from ₹103.02 crore a year ago. Total revenue for the year stood at ₹5.20 crore, compared to ₹108.15 crore in the previous fiscal. It reported a loss of ₹62.07 crore in 2023-24, against a profit of ₹1.24 crore a year ago, showed company filings with the ministry of corporate affairs, accessed by data platform Tofler. 'They've already closed a significant part of the bridge round, and the Series B will help tide them over until payments from larger defence contracts come through," said the first of the three people cited above. In February 2022, it secured $21 million in a Series A led by Pavestone Technology Fund to support deliveries to the armed forces. This was followed in December 2022 by a ₹26.6 crore (~$3.21 million) pre-Series B, backed by QRG Investments & Holdings, Ahmed Ali Husain Nalwala, and DS Group. This fresh round comes a year after its biggest boost in March 2024, when it raised $52 million in a bridge round—$33 million in equity from investors including Cornerstone Venture Partners, 360 ONE Asset, and Volrado Venture Partners, along with $19 million in debt from State Bank of India's startup hub and Small Industries Development Bank of India—marking one of the largest equity raises for an Indian defence startup. This capital influx has enabled the company to expand production and innovation in swarm drones and related aerospace systems. NRT designs and develops high-altitude, long-endurance drones (HAPS) capable of operating for months at altitudes of 5-20 km, as well as AI-enabled autonomous swarm drone systems for both military and civilian applications. The company collaborates closely with the Defence Research and Development Organisation (DRDO), India's premier military R&D agency. Its top competitors include US-based Anduril Industries and Shield AI, both of which develop AI-enabled autonomous defence systems, and Tata Advanced Systems, a major Indian defence manufacturer with growing capabilities in unmanned platforms. Like NRT, these companies focus on integrating advanced sensors, autonomy, and swarming capabilities for military operations, according to market intelligence platform Tracxn.
Mint
09-05-2025
- Business
- Mint
Indian drone makers see demand opportunity in border tensions, boost production
Anticipating a rise in demand for defence technologies due to escalating border tensions and deepening geopolitical unrest, Indian drone manufacturers such as IdeaForge, IG Drones, and Garuda Aerospace are boosting their production of surveillance and tactical systems. The India-Pakistan conflict has seen both sides deploy drones for warfare and surveillance. The Indian defence forces are known to have deployed Israeli-made so-called suicide drones on 8 May. But given that the tensions are far from ebbing, Indian drone makers are looking to cater to an expected rise in demand for such defence technologies. Also Read | US Army plans massive increase in its use of drones "Our teams are currently deployed in the valley. Many of our customers already use our technology, so we remain on standby, ready to enhance their operational capabilities," Ankit Mehta, chief executive officer (CEO) of IdeaForge said, adding that due to the sensitive nature of the situation, the company is not privy to how the Indian armed forces are using their assets on the ground. Mehta also refused to divulge details about the kind of drones - and quantity - that were being sought, saying that the information was sensitive. Also Read | Drone startups looking beyond defence to serve agriculture, quick commerce Similarly, IG Drones, a Delhi-based start-up, has ramped up manufacturing efforts in response to the growing demand for defence technology. Shuvam Dash, co-founder of IG Drones said that escalating border tensions have prompted the company to boost production. Govt procurement Likely procurements by the armed forces could provide some much-needed relief to drone companies, which have faced a slowdown due to delays in government contracts. On Friday, IdeaForge reported a ₹26 crore loss in Q4 FY25, marking its third consecutive quarter of losses. Despite these setbacks, the company's operating revenue rose 15% quarter-on-quarter, reaching ₹20.3 crore. Interestingly, in Q4 FY25, civil contracts accounted for a massive 96% of the company's revenue, with defence contracts contributing just 4%. Also Read | Insurance for RE, hydro projects in border states to rise amid conflict There is a growing emphasis on the need for Intelligence, Surveillance, and Reconnaissance (ISR) capabilities. Mehta explained, 'We believe it's crucial to have the capability to find, locate, and designate targets that are important for our national security. That's where ISR capabilities can play a vital role." In addition, armed drones and ISR are expected to be increasingly leveraged for retaliatory actions. 'What's very clear to us is that drones are going to be a de facto part of the infrastructure deployed for security and governance," said Mehta, emphasising the evolving role of drones in national defence. Investors like Cornerstone Ventures are doubling down on their belief in the long-term value of drones for national security. Cornerstone Ventures has backed NewSpace Research & Technologies, a key manufacturer in India's defence drone sector and co-developer of the indigenously built kamikaze drones, recently deployed across the border, according to media reports. "Large corporations in the defence space typically offer a bouquet of services, and when there's a ₹10,000– ₹20,000 crore defence budget, about 90% of it goes to those major players. But that's exactly where the innovation and unique strengths of startups come in," said Abhishek Prasad, managing partner at Cornerstone Ventures. These niche innovations can be crucial and often lead to partnerships with bigger players, who value the depth of expertise smaller firms bring, Prasad added. Even so, the road to profitability remains uncertain, as procurement processes continue to evolve—especially since larger players like Tata Advanced Systems Ltd and Adani Defence continue to dominate the space. Aerial platforms remain the focal point of this shift, leaving smaller and emerging firms to carve out niche advantages in a highly-competitive environment.
