New Delhi, June 10 -- Indigenous drone maker Zuppa is in talks with several investors to raise a fresh round as it looks to broaden its interceptor drone segment, a top official said.

The Chennai-based Zuppa Geo Navigation Technologies Pvt. Ltd, founded in 2008 by Sai Pattabiram, specialises in designing, developing and manufacturing drones, and drone technologies. It offers indigenous drones, autopilot systems and cybersecurity solutions for unmanned aerial vehicles used for defence purposes.

Some of its indigenous drone technologies include the NavGati Autopilot, which mimics human interaction with vehicles; the Drishaya Vision, which uses live camera feeds to offer real-time piloting or driving of a vehicle; and its autonomous Ajeet drones for tactical defence.

Zuppa is currently in talks with multiple deep tech and defence-focussed VC firms, strategic investors, as well as foreign investors to raise a pre-Series A funding round of around Rs 40 crores (around $4.2 million). Pattabiram, however, did not divulge the names of these investors but said he expects to close the round in the next three to six months, he told VCCircle.

The fundraise will be primarily used to integrate interceptor drones, to test them and work with them in the Indian Army, to market it to the defence force and then expand Zuppa's geographical presence in other countries by licensing out the firm's technology and through partnerships, said Pattabiram.

The company has already worked on a couple of interceptor drone projects with the Indian Army and expects the segment to drive revenues going ahead.

Following this round, the firm is likely to tap up to $15 million in a Series A round, which would be done in the next 12-18 months, Pattabiram said.

In 2025, the firm had secured an undisclosed investment and orders for its products from drone manufacturer Garuda Aerospace. Last year, it had also raised $1.5 million as a bridge round from individual investors such as Rahul Dewan, founder of a software engineering company and Sangam Talks, Ajay Gupta of Capital Foods. Zuppa's early investors also include Indianivesh Venture Capital Fund, tech firm Operational Energy Group, digital map data provider MapmyIndia and private equity firm First Bridge.

Interceptor Drone Market

Pattabiram expects strong demand for interceptor drones, as countries increasingly rely on them as the first line of defence in modern warfare. Interceptor drones are used to detect and neutralise hostile drones, and come at a much lower cost than traditional defense options.

The startup founder said that they were expecting larger orders from the Indian army and may also look at exports and licensing of the drone technology to India friendly countries. The firm has already had discussions with a few firms from Romania, France, Germany and South Africa, among others.

Zuppa's manufacturing facility in Chennai has the capacity to produce about 500 drones a month. It also collaborates with manufacturing companies to assemble drones.

"We plan to outsource the manufacturing when volumes increase. We will only be doing small batches ourselves," Pattabiram said.

As of now, Zuppa supplies most of its drones to the Indian army. It clocked Rs 8 crores in revenue in FY26, driven primarily by its cybersecurity certification in December last year, which ensures that an unmanned aerial vehicle (UAV) is protected against digital attacks.

In the current fiscal, revenues are expected to jump manifold to at least Rs 70-80 crores as the firm has already clocked Rs 8-10 crores in the Apr-June quarter through the government's revenue purchase portal meant for smaller orders.

The topline could increase further if the Indian Army places large orders through its capital purchase route, Pattabiram said.

"The Indian Army will have to come out with it (large orders) in this financial year, because they haven't bought anything significant in the last two to three years," he said.

In FY26, the firm's EBITDA (earnings before interest, tax, depreciation, and amortisation) was Rs 4.01 crore, compared with Rs 45 lakh in the previous year. Zuppa expects EBITDA to jump to Rs 45 crore in the current fiscal.

Published by HT Digital Content Services with permission from VC Circle.