One of the leading private capital raises in the nation's aerospace manufacturing industry to date was made by the Indian defense-tech and aerospace firm Raphe mPhibr, which raised $100 million in a funding round headed by General Catalyst.

The round also included participation from Think Investments, Amal Parikh, and other family offices, increasing the company's total funding to $145 million.

This expenditure coincides with the growing usage of drones in international conflicts and military operations. Drones were widely used by both sides in the most recent India-Pakistan conflict.

The Noida-based startup was founded nearly ten years ago by brothers Vivek and Vikash Mishra. They design and manufacture a variety of unmanned aerial vehicles (UAVs), such as the mR10 drone swarm platform, the mR20 high-altitude logistics drone, the man-portable surveillance drone Bharat, and the compact maritime patrol system X8.

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The Indian armed forces now employ a number of these systems, while others are almost ready for final approval.

The company's end-to-end production strategy has been the main focus of its investor pitch.

The startup stated in the statement that it has a vertically integrated aerospace campus with internal teams in the fields of thermodynamics, materials science, aerodynamics, and other fields.

Neeraj Arora, MD at General Catalyst, said, " We are proud to join forces with Raphe mPhibr on their transformative journey to redefine engineering led manufacturing across a spectrum of critical applications... The products emerging from Raphe mPhibr are already making a tangible impact on the ground...".

The investment supports India's larger initiative to develop its private aerospace sector. Through programs like the Innovations for Defence Excellence (iDEX) programme, the government is courting entrepreneurs and recently transferred satellite launch vehicle technology to Hindustan Aeronautics Limited (HAL).

Raphe mPhibr, which rivals listed companies IdeaForge, Garuda Aerospace, and Tata Advanced Systems, reported revenue of Rs 86 crore in fiscal 2024, more than doubling that of FY23's Rs 42 crore, according to Tracxn statistics. In FY24, the business reported a profit of Rs 9 crore as well.

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In 2022, the federal government shortlisted 12 drone producers, including Raphe mPhibr, for the production-linked incentive program for drones and drone components.

IdeaForge announced earlier this week that it has obtained an emergency procurement order for hybrid small UAV systems from the Indian Army, valued at around Rs 137 crore.