India's defence startups attract government contracts, investor funding

A clutch of domestic private firms are challenging state-run suppliers with advanced tech-driven hardware for India's defence services, signalling growing confidence in homegrown military technology

Indian defence organisations are increasingly turning to private startups for cutting-edge systems — from autonomous drones to satellite swarms — that were once the exclusive domain of state-run manufacturers. The shift is attracting venture capital to a sector that was, until recently, dominated by government suppliers and remains heavily regulated.

 

The latest to join the bandwaon is EyeRov, an Indian underwater robotics startup which recently secured a Rs 47 crore contract with the country's Navy, marking a significant win for homegrown defence technology as India pushes to reduce dependence on foreign suppliers.

 

The company, founded in 2017, will supply advanced underwater remotely-operated vehicles (UWROVs) capable of diving to depths exceeding 400 metres for surveillance and reconnaissance missions.

 

Johns T Mathai, co-founder and chief executive officer of EyeRov, said the Navy's contract is a validation of its dedicated efforts over the past eight years. "Our vision has always been to serve the nation by delivering technologies that are at par with global standards," said Mathai.

 

EyeRov's UWROVs have been tested in demanding environments, from turbulent deep-water missions for volcanic studies to the coldest depths of the Antarctic Sea. The field tests demonstrate that the Navy will receive systems designed for real-world challenges where precision, safety and reliability are paramount, according to the company.

 

The EyeRov Trout, rated for depths of 300m, is a military-grade ruggedised remotely-operated vehicle developed for dual applications in defence as well as commercial sectors. It can dive deep with advanced payloads to carry out multiple missions like underwater surveillance and reconnaissance to monitor naval environments and conduct other operations.

 

EyeRov brings nearly a decade of field experience delivering underwater intelligence in mission-critical projects — from disaster recovery to dam safety inspections to offshore energy operations and naval operations. The company's technology stack is fully developed in India, reinforcing the nation's push towards self-reliance in defence.

 

"For eight years, EyeRov has engineered underwater systems tested in the harshest conditions," said Kannappa P, co-founder and chief technology officer. "This partnership with the Navy is proof that Indian innovation can set benchmarks globally in defence deep-tech."

 

The firm has completed more than 100 deployments across India, West Asia, Asia-Pacific, and Europe. The company has more than 80 customers, including the Defence Research and Development Organisation (DRDO), the Indian Coast Guard, the Council of Scientific and Industrial Research (CSIR), and the National Centre for Polar and Ocean Research (NCPOR).

 

Last year, EyeRov raised a pre-Series A round of $1.2 million from Unicorn India Ventures.

 

More defence tech in the pipeline

 

The defence startup ecosystem extends beyond underwater robotics. Tsalla Aerospace is developing next-generation autonomous systems for defence and industrial applications. Founded in 2019 and incubated at the Indian Institute of Science (IISc), Bangalore, the firm is developing a hardware-agnostic AI Pilot that allows drones and other unmanned systems to operate independently even in environments where GPS (Global Positioning System) and communication are denied, with zero operator cognitive load.

 

It currently works with the Indian Navy and Indian Army on key defence projects, including confined-space reconnaissance systems for intelligence gathering in high-risk zones, as well as rapid-deployment, backpack-based VTOL (vertical take-off and landing) platforms operable by a single user. Projects also include offshore and high-altitude logistics solutions such as ship-to-ship delivery in harsh weather conditions.

 

“Our systems are designed to think, sense and act so that those who serve can focus on the mission, not the machine,” said founder and CEO Vinayak Tsalla.

 

By combining AI-driven autonomy, edge computing and resilient satellite communications, Tsalla is creating a unified autonomy architecture capable of sustained operation across air, land, and sea, even in the most degraded environments.

 

The company recently raised $1 million in its first external funding round led by Sunny Stalnaker, executive vice president of ASML, the Dutch multinational and global leader in semiconductor manufacturing technology. Her participation marks a significant endorsement of Tsalla’s vision to build an integrated autonomy ecosystem for the future of unmanned systems.

 

“Tsalla represents the kind of engineering ambition that reshapes industries. Their blend of technical rigour, resilience, and perseverance convinced me to be part of their journey,” said Stalnaker.

 

The funding is also supported by the Small Industries Development Bank of India (Sidbi) and equity-free grants from the ministry of defence’s Innovations for Defence Excellence (iDEX) programme, underscoring strong institutional backing and alignment with India’s strategic technology priorities.

 

“Our vision is to create a unified autonomy ecosystem where satellites, aircraft, ground vehicles, ships, and underwater platforms operate seamlessly - thinking, deciding and acting together without human intervention. This funding helps us accelerate towards that future,” said Tsalla. The firm plans to raise $8 million in its upcoming seed round to expand its AI autonomy stack globally and tap new defence and industrial markets.

 

Another deep-tech firm, Ulook, is developing autonomous satellite swarms for RF (radio-frequency) sensing and spectrum awareness. Founded by Siddhesh Naik and Adheesh Boratkar, the firm is pioneering RF Fingerprinting from Space — a breakthrough in radio intelligence that enables identification and classification of emitters by their unique signal characteristics.

 

The company’s proprietary payload suite, PulseTrack, delivers real-time RF situational awareness across small satellites, drones, and high-altitude platforms. These enable applications in maritime domain awareness, dark ship detection (vessels that have disabled their automatic identification system), disaster response, and environmental monitoring.

 

“We are convinced that complex deep-tech can be built right here at home, and in a far more capital-efficient way,” said Siddhesh Naik, co-founder and CEO, Ulook. “The regulatory environment today is finally conducive for entities like Ulook to exist and thrive.”

 

The firm recently raised Rs 19 crore  in a seed round led by growX ventures and InfoEdge Ventures. Over the next 12–18 months, the firm will scale its engineering capabilities as it moves from prototype to commercial deployment with national research stakeholders, the defence ecosystem, and strategic industry partners.

 

“Deep-tech will play a central role in India’s next decade of innovation,” said Sanjeev Bikchandani, founder of Info Edge and an investor in Ulook. “It needs long horizons, patient capital, and founders who can translate deep research into deployable technology.”