Mumbai, Sept. 4 -- Aerospace and defence startup Newspace Research and Technologies (NRT), which builds unmanned drones, is looking to raise between $35-40 million in its Series C funding, according to three people familiar with the matter.

"The raise is a mix of equity and debt, but their debt investors are only likely to go ahead once NRT manages to secure the equity component," said a person familiar with knowledge of the deal. Debt investors in the company include Trifecta Capital and Stride Ventures.

"The company is looking to close out the round by December. They're involving private equity in this round," a second person said. "While they're received a term sheet from existing investor 360 ONE Asset, a few family offices are also...