New Delhi, May 20 -- InCred Alternative Investments, the alternative investment arm of InCred Capital Financial Services, has invested Rs 185 crore (around $19 million) in Hyderabad-based VEM Technologies Private Limited through its private equity funds, InCred Growth Partners Fund-I (IGPF-I) and InCred Growth Partners Fund-II (IGPF-II), the investor said in a statement.
InCred has made its investment as primary growth capital to support VEM Technologies' expansion plans.
"This investment will support us in strengthening our manufacturing infrastructure, enhancing our capabilities across complex defence and aerospace systems, and addressing the growing demand from both domestic and international markets," said V Venkata Raju, founder, chairman and managing director, VEM Technologies Private Limited.
The investment reflects the PE firm's conviction in India's rapidly evolving defence manufacturing ecosystem, the statement said.
"India's defence and aerospace sector presents a compelling long-term investment opportunity, supported by structural policy reforms, increasing localisation, and rising focus on indigenous manufacturing capabilities. VEM Technologies stands out for its strong technological expertise, execution track record, and strategic positioning within India's evolving defence ecosystem," said Vivek Singla, managing partner and chief investment officer, InCred Alternative Investments.
Founded in 1988 and promoted by V. Venkata Raju and family, VEM Technologies is a private-sector defence and aerospace company with presence across system engineering, integration, design, manufacturing, and quality assurance for defence, aeronautics, and space systems and sub-systems.
According to the statement, it supplies critical components and systems to strategic missile programmes including BrahMos, Akash, and Prithvi.
India's defence manufacturing sector is witnessing accelerated localisation, increasing order visibility and growing export momentum. Chennai-headquartered Geruda Aerospace has filed for an IPO and is looking to raise Rs 1,000 crore (including offer for sale) through the public issue.
Aerospace firm Ananth Technologies is likely to rope in investors for further its expansion plans.
Recently, Hyderabad-based spacetech stratup Skyroot Aerospace raised $60 million in a fresh round of funding, pushing its valuation to $1.1 billion.
InCred Growth Partners Fund (IGPF) is a series of private equity funds sponsored by InCred Capital Financial Services, focused on investing in founder-led Indian businesses operating in sectors of national importance. Its strategy follows a concentrated portfolio approach with investments across select companies aimed at creating long-term value.
Launched in 2023, IGPF-I is the maiden private equity fund under the platform and a SEBI-registered Category II AIF, while IGPF-II was launched in late 2025.
Published by HT Digital Content Services with permission from VC Circle.