New Delhi, May 21 -- Drone technology company Garuda Aerospace Ltd, which last month filed draft papers through the confidential route for an initial public offering, is in the process of raising a pre-IPO round of funding, at least two people familiar with the development told VCCircle.
Chennai-based Garuda filed draft papers with the Securities and Exchange Board of India (SEBI), seeking approval for an IPO to raise Rs 1,000 crore including an offer for sale of Rs 250 crore, through the confidential route that allows companies to defer disclosure of key details such as financials, valuation, and issue structure.
As the company is getting ready to get listed, it is in the market to raise roughly Rs 200 crore (about $20.7 million) in a pre-IPO round, one of the persons mentioned above said. "The conversations are going on with some high net-worth individuals, family offices and venture capital firms," he added.
Another person mentioned above said that the company has secured commitments of Rs 100 crore from VC firms. "A few private investors are already onboard and conversations are on to raise the rest of the capital. The round will be closed soon," he added.
The two people also said that the company is currently raising funds at a valuation of Rs 2,100-2,500 crore and will aim for a valuation of Rs 3,500-4,000 crore in the planned IPO. "The delta in valuation is what investors are betting on in the pre-IPO round," one of them added.
Separate emails written to the spokespersons for Garuda Aerospace seeking comment did not elicit any response till the time of filing this article.
Meanwhile, in the run-up to the IPO, the company has transitioned into a public entity and has also undertaken stock split, reducing the face value of its shares to Rs 2 from Rs 10 apiece.
Garuda designs, develops and manufactures drones and offers related services to multiple sectors such as agriculture, defence, infrastructure, and mining. Its services include precision spraying, aerial surveillance, mapping, inspection, logistics support, enterprise applications and data-led analysis. Beyond agriculture, the company is expanding into areas such as infrastructure inspections, powerline monitoring, oil and gas inspection, construction mapping, defence surveillance, riot control and disaster response.
In the financial year 2024-25, it clocked revenue of Rs 122 crore and a net profit of 18.4 crore, registering a growth of 12% and 41%, respectively.
Last year, Garuda Aerospace raised Rs 100 crore in a Series B funding round from Venture Catalysts. The round also saw participation from Badshah Masala, MGM Foundation, Hathor Corporate Advisors, Biz Secure Labs Pvt Ltd, WFC, and cricketer MS Dhoni, who is also the company's brand ambassador. The Series B round came nearly two years after it raised $22 million in a Series A round led by early-stage venture capital firm SphitiCap.
The company used capital from the previous fundraises to scale up manufacturing and expedite the completion of the Garuda Drone Park, a 35,000-square-feet R&D and testing facility developed in Chennai in collaboration with Tata Elxsi and other partners.
Founded in 2015 by Agnishwar Jayaprakash and his wife Rithika Agnishwar, Garuda claims to operate India's largest drone fleet, with over 400 drones and 500 pilots active across 84 cities. The company manufactures 30 types of drones and says it has worked with over 750 clients, including large corporations such as Tata Elxsi, Godrej Agrovet, Adani Group, Reliance Industries, Swiggy, and Flipkart. It has also formed partnerships with international defence and technology giants like Lockheed Martin, Cognizant, and Israel's Elbit Systems.
Published by HT Digital Content Services with permission from VC Circle.