IAN Alpha Fund invests ₹25 crore in D-Propulse to boost testing, R&D

IAN Alpha Fund on Wednesday said it has invested Rs 25 crore in D-Propulse Aerospace. The firm plans to use the seed capital to expand its engineering team, strengthen computing and simulation capabilities, and set up testing infrastructure. 

D-Propulse is building an indigenous rotating detonation engine (RDE)-based propulsion system. Unlike conventional jet engines, RDEs have no moving parts; they are mechanically simpler, easier to manufacture, and more reliable at scale than even traditional ramjets and scramjets. They also deliver 25 per cent or higher thermal efficiency gains, enabling smaller engines to deliver higher performance, it added. 

The aerospace company said it is also integrating artificial intelligence (AI) into operations and technical development to accelerate design and validation cycles. The company added that initial engagements with the Indian military are under way, with export markets to be addressed in close consultation with the government at a later stage. 

 

Globally, RDE is emerging as a general-purpose technology with applications across propulsion, rockets, gas turbines and power generation, representing a potential $100 billion market by 2035.

 

Data from market intelligence firm Tracxn show that in India, 1,405 companies are registered in the aerospace, maritime and defence tech sector, with total funding standing at $2.21 billion.

 

Commenting on the fundraise, Saurav Jha, founder and chief executive officer of D-Propulse Aerospace, said: “We are progressing indigenous air-breathing rotating detonation engine technology and also building bespoke systems around it. Our plans are not limited to developing RDE-powered effectors but extend to the creation of high-supersonic drones as well.”

 

Rajnish Kapur, managing partner, IAN Alpha Fund, said: “Propulsion is the hardest and most capital-intensive problem in high-speed aerospace systems, and it has historically been the limiting factor for scale. What excites us, at IAN, about D-Propulse is not just the choice of rotating detonation technology, but the way it fundamentally changes system economics — simpler engines, higher efficiency, and dramatically lower costs.”

 

As for the fund, the IAN Alpha Fund is the second in the series of IAN Group’s VC funds, with a corpus of $100 million. With this investment, the firm aims to build a portfolio of companies that align with the country’s strategic imperatives.