IAN Alpha Fund, the 2nd in the series of IAN Group’s VC fund, has invested Rs.25 crores in D-Propulse Aerospace Private Limited to support the development of next-generation aerospace propulsion systems. The investment reflects IAN Group’s commitment to support deep-tech startups aligned to India’s strategic imperatives.

D-Propulse’s advanced propulsion technologies bring critical innovation to India’s long-term defence strength and industrial resilience. D-Propulse is building indigenous Rotating Detonation Engine (RDE) based propulsion systems that fundamentally change how high-speed platforms are designed, manufactured, and deployed.

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Saurav Jha, Founder & CEO, D-propulse Aerospace says, “We have entered an era where speed is the new stealth. Defence budgets across the major power centres of the world are pivoting in recognition of this new reality”.

Rajnish Kapur, Managing Partner, IAN Alpha Fund says, “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. Affordability is the real unlock if India is to move from a few exquisite platforms to true scale”.

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Unlike conventional jet engines, RDEs have no moving parts. In fact, they are mechanically simpler, easier to manufacture, and more reliable at scale than even traditional ramjets and scramjets. They also deliver 25 percent or higher thermal efficiency gains, enabling smaller engines to deliver higher performance.

“Our vision is to ensure that India is fully equipped to not merely navigate but potentially dominate this emerging era of high-supersonic and hypersonic systems and platforms”, adds Saurav.

This combination brings down system costs significantly. By offering performance comparable to today’s high-speed weapons at a fraction of the cost, the company seeks to enable “mass in precision”, the ability to deploy fast, accurate systems at scale.

Saurav denotes, “Towards that end, 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”.

“We see D-Propulse’s team that understands both the physics and the strategic context, and are delighted to back them as a long-term partner in building this for India”, adds Rajnish.

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The seed capital from IAN Alpha Fund will be used to expand the engineering team, strengthen computing and simulation capabilities, and set up limited testing infrastructure. The company is also integrating AI into both operations and technical development to accelerate design and validation cycles.

Initial engagements with the Indian military are underway, with export markets to be addressed in close consultation with the government at a later stage.

With this investment, IAN Alpha Fund reinforces its role as a conviction-driven investor in deep technology, backing teams that combine scientific depth, execution capability, and a clear understanding of how technology shapes strategic needs to deliver high ROIs.