04-08-2025
Defence Startups Zoom Post Operation Sindoor
As defence strategies worldwide shift towards autonomous and intelligent aerial systems, the need of the hour is AI-powered, modular drone ecosystems that can operate with minimal human intervention
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When Operation Sindoor was striking Pakistan's terror infrastructure in a series a precision strikes, it was more than a strategic success for India. It was an event that validated the prowess of India's defence ecosystem and startups that have seen a major boost in the aftermath of the war. This boom has led to increased funding, investment, and a renewed focus on indigenous defence manufacturing.
For instance, Zuppa Geo Navigation Technologies, touted as India's only deep-tech drone company specializing in cyber-secure autonomous systems, experienced a 10-fold jump in its order pipeline during May 2025.
"Today, our order pipeline of around ₹14 crore has seen close to a 10x jump from pre operations Sindoor days. This jump can be attributed to the realisation of the need for cyber secure and electronic warfare survivable drones, among the key end use segment of defence. Our patented autopilot system that is fully indigenous from the design and computing architecture level is the only Indian solution that addresses all the security concerns of the defence forces," says Sai Pattabiram, Founder and MD, Zuppa Geo Navigations.
Zuppa has recently raised ₹5 crore in strategic funding from Sangam Talks founder Rahul Dewan's Four Pursuits Fund, to fuel the need for secure indigenous defence technologies.
"India must future-proof its defence capabilities through homegrown, cyber-resilient technologies. Zuppa's Ajeet Mini and NavGati autopilot stack represent that future. I am excited to support this mission," says Rahul Dewan, Founder of Four Pursuits, a sector-agnostic fund.
Zuppa claims that it is among the only seven companies globally – and the sole Indian player –
with proprietary autopilot systems built on its patented Disseminated Parallel Control Computing in Real Time (DPCC) architecture. This cutting-edge cyber-physical stack powers the company's flagship Ajeet Series drone platforms.
Recently validated by the Indian Army at multiple locations including high-altitude zones above 11,000 feet, the Ajeet Mini claims to be India's first indigenous kamikaze/micro-armed drone platform. Additionally, ZUPPA is working closely with the Indian Army to incorporate learning's from Operation Sindoor into its NavGati autopilot and communication systems to create future ready drones for defence that can operate in Electronic Warfare (EW) intensive and contested environments.
"Over the next 12-18 months, Zuppa plans to establish itself as a supplier of cyber secure and EW resistant drones to the Indian defence while expanding its product range and offerings across a wide range of applications and use cases. Having done so, ZUPPA shall expand its geographical foot print across the world for the entire range of cyber secure and EW resistant drones especially to friendly countries in Africa, MENA etc.," says Pattabiram.
Soaring New Heights
The market capitalization of 18 listed Indian defence companies reached record highs in the range of ₹11 lakh crore in the days after May 7 when Operation Sindoor was initiated. The rise was driven by strong investor confidence, rising geopolitical tensions, and government support for indigenous defence manufacturing.
The Nifty India Defence Index has emerged as the top performing sector so far surging about 40 per cent in the last five months, a clear indicator that the sector is seen as a promising long-term opportunity, backed by rising defence budgets, growing export interest, and sustained policy focus under the 'Make in India' and 'Atmanirbhar Bharat' initiatives.
In an era of fast-evolving conflicts and unmanned combat, drones have emerged as the decisive force in modern warfare. From targeted loitering strikes to autonomous surveillance missions across the globe, drones have redefined how nations assert dominance and secure their borders. The current war landscape demands speed, precision, and decision-making without latency – something traditional warfare systems cannot deliver.
As defence strategies worldwide shift towards autonomous and intelligent aerial systems, the need of the hour is clear: AI-powered, modular drone ecosystems that can operate with minimal human intervention while adapting dynamically to battlefield scenarios.
Rising to this challenge, Aerpace Industries Ltd, in collaboration with Aerpace Robotics, UAV Tech, and Leospear Defence, has successfully developed and tested India's next-generation smart UAV ecosystem under the aerShield initiative. Each partner brings a core capability – AI and flight software from Aerpace Robotics, airframe and propulsion engineering from UAV Tech, and advanced munitions integration from Leospear Defence.
At the heart of this ecosystem lies aerOS – an AI-based autonomous drone control platform that enables real-time flight navigation, mission execution, obstacle avoidance, and targeting with surgical precision.
"We are not simply building drones; we are shaping a new frontier for India's defence autonomy," says Ravi Soni, Executive Director of Aerpace Industries. "aerShield is a testament to what homegrown innovation can achieve when guided by purpose and urgency. Our teams are committed to ensuring India leads, not follows, in the evolution of AI-driven defence."
With testing completed and field integrations underway, Aerpace is set to begin live demonstrations for Indian and allied defence forces. This milestone marks a decisive move toward making India a global hub for smart, indigenous drone warfare systems—redefining the rules of engagement for decades to come.
Indrajaal, India's leading autonomous drone defence company, recently launched Indrajaal Infra – a specialised product line designed to safeguard high-value critical infrastructure such as nuclear power plants, oil refineries, ports, airports, and energy grids from drone-based attacks.
"Indrajaal Infra offers autonomous, real-time airspace security across vast areas up to 4,000 sq. km. The system integrates AI-driven threat detection with a layered defence approach – combining sensors, spoofers, jammers, and command intelligence – to deliver 24/7 autonomous protection against rogue drones," the company said in a statement.
Currently, Indrajaal Infra is already operational at a strategic naval port in Gujarat, following successful trials during recent cross-border escalations. Deployment is also underway at India's largest naval port in Karnataka, signalling a critical step in fortifying India's maritime and industrial defence infrastructure.
The launch is especially timely given the recent India-Pakistan conflict, which witnessed an increase in drone-based threats targeting sensitive assets near the western border. While many were intercepted before causing damage, the incidents exposed critical gaps in conventional surveillance and perimeter defences.
"Peacetime readiness is wartime insurance. The cost of protecting critical assets today is far lower than the cost of rebuilding them after an attack," says Kiran Raju, Founder and CEO of Indrajaal. "Indrajaal Infra is designed to ensure operational continuity, national resilience, and industrial sovereignty in a rapidly evolving threat environment."
Looking Ahead
India's defence manufacturing has seen a remarkable transformation in the last few years. In 2023-24, the country recorded its highest ever defence production, touching ₹1.27 lakh crore. This is a sharp rise of 174 per cent compared to ₹46,429 crore in 2014-15.
The shift from import dependence to domestic production has been both strategic and swift. With clear political direction and consistent reforms, India has moved towards true self-reliance in defence. The focus has been on developing a strong industrial base anchored in indigenous design and manufacturing.
The Ministry of Defence signed 193 contracts worth ₹2,09,050 crore in 2024-25 – the highest ever in a single year. Of these, 177 contracts were awarded to the domestic industry, amounting to ₹1,68,922 crore.
Global brokerage Jefferies India anticipates a 2-fold growth in domestic defence spending over FY24-30, which should drive further upside in stocks like Hindustan Aeronautics (HAL), Data Patterns, and Bharat Electronics (BEL). Despite the growth, India does not have a defence unicorn yet but the prospects are strong. Experts believe more defence unicorns are expected to emerge in the next 3-5 years as India turbocharges its defence ecosystem.
