New Delhi, Oct. 6 -- Defence-focused electronics manufacturer Sanlayan has begun the process to raise $35-40 million as it looks to be valued at $150-200 million, according to two people familiar with the matter.

"The company launched the fundraising effort just a few weeks ago," said one of the persons cited above, asking that they remain unnamed as the discussions are private. "They've only just begun to start speaking with some growth investors that are eyeing defence investments."

The fundraise comes at a time when Indian deeptech companies have been aggressively raising money, particularly those that have achieved some scale. So far this year, the sector has raised $2.5 billion across 225 deals, compared with $1.6 billion across 48...