Indian aerospace and defense startup NewSpace Research & Technologies (NRT) is set to raise USD 13.3 million (~INR 115 crore) through a debt round, marking a significant financial move in the face of its recent business headwinds.
Structure of the Fundraise
According to the company’s regulatory filing with the Registrar of Companies (RoC), the board approved the issuance of 115 compulsory convertible debentures (CCDs) at a face value of INR 1 crore each.
The round will be led by Lend Lease Company India with an infusion of INR 13 crore. Angel investor Ahmed Nalwala and ARA Investment will follow, each committing INR 10 crore. Additional contributions will come from NK Trust (INR 7 crore), Weil Investments (INR 5 crore), and the Gauri Khan Family Trust (INR 2 crore). The balance will be raised from 32 other investors, including several angel investors.
The company stated that the funds will be directed toward operational expenses, working capital requirements, and capital expenditure to support ongoing expansion plans.
Background and Business Focus
Founded in 2017 and headquartered in Bengaluru, NewSpace Research & Technologies has positioned itself as a pioneer in aerial autonomy, swarming drones, and AI-enabled defense systems. The company works closely with the Defence Research and Development Organisation (DRDO), the Indian Air Force, and other government agencies such as the Ministry of Defence, the National Disaster Response Force (NDRF), and the Ministry of Home Affairs.
Its portfolio includes advanced unmanned aerial vehicles (UAVs) such as:
- BELUGA – a hybrid multi-rotor, long-endurance UAV.
- NIMBUS – a versatile, multi-purpose electric UAV.
- MACKEREL – a loitering munition multi-rotor UAV.
- NIMBUS-SCOPE – a tethered electric UAV designed for persistent operations.
Funding History and Financial Performance
Over the years, NewSpace has attracted marquee investors, including Volrado Venture Partners, Pavestone, QRG Investments, and others. According to market reports, the company has raised over USD 80 million (~INR 705 crore) to date.
Despite its technological advances, the company has faced recent financial turbulence. For the fiscal year ending 31 March 2024, NewSpace reported a sharp revenue decline to INR 96.25 lakh, compared to INR 103 crore in FY23. Simultaneously, it posted a net loss of INR 62 crore, a stark reversal from its earlier profitability.
Outlook
New debt funding is a vote of confidence in NewSpace’s long-term vision, even if the short term is tough. As India pushes for indigenization in defence tech, NewSpace’s expertise in autonomous aerial systems and drone swarming puts it at the top of the pile in this space.
With this funding, the company will strengthen its operations, continue product development and scale defence and civilian drone applications—NewSpace will remain one of India’s most watched defence-tech startups. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription, stay tuned to IPO Central.