In a decisive move signalling the rising investor confidence in India’s indigenous defence sector, Bengaluru-based defence electronics startup Sanlayan Technologies has raised USD 22 million (~INR 186 crore) in an oversubscribed Series A funding round. The round was led by marquee investors Ashish Kacholia, Lashit Sanghvi (Alchemy Capital), and Singapore-headquartered Jungle Ventures, with participation from Gemba Capital, Singularity Ventures, and new investor Shastra VC.
Founded in September 2023 by former Zetwerk executives Rohan Gala (CEO), Abhijit Kothawale (COO), and Rahul Vamsidhar (CBO)—alumni of IITs, IIMs, and industry veterans from L&T, Tata Advanced, Mahindra Defence, Ola, and RBS Bank—Sanlayan is positioning itself at the frontier of India’s defence electronics renaissance.
Capabilities and Growth Agenda
Sanlayan specialises in the design and manufacture of mission-critical electronics systems including:
- Active Electronically Scanned Array (AESA) radars
- Electronic Warfare (EW) systems
- Avionics and embedded systems for air, naval, and space applications
Its systems have already contributed to key national missions, including ISRO’s Chandrayaan-3 and Aditya-L1, underscoring the startup’s early credibility in high-stakes programmes.
The startup is also developing an AESA radar system specifically for India’s Unmanned Underwater Vehicle (UUV) programme, leveraging both internal R&D and collaborations with five Indian defence startups and international OEMs.
Acquisition-led Capability Building
In a strategic play earlier this year, Sanlayan acquired a majority stake in Dexcel Electronics, a 25-year-old embedded systems design firm with legacy involvement in defence platforms like Jaguar, Sukhoi, LCA Tejas, and various ISRO missions. This acquisition has bolstered Sanlayan’s design and manufacturing backbone for high-reliability defence and aerospace systems.
“We’ve strengthened Dexcel’s design and manufacturing capabilities and are now gearing up to execute large-scale indigenisation and upgrade programs,” said CEO Rohan Gala.
Capital Allocation
The fresh capital will be channeled toward:
- Suo-moto development of critical technologies for CUAS (Counter-Unmanned Aerial Systems) and EW systems
- Fivefold increase in engineering headcount over the next six months
- Expansion of internal R&D and strategic international partnerships
- Continued acquisition of Indian MSMEs in the defence manufacturing ecosystem
“This is not just a business opportunity; it’s a national imperative,” said Ashish Kacholia. “Sanlayan’s clear understanding of India’s defence electronics landscape and hybrid strategy makes it a compelling investment.”
Defence Tech on the Rise
Sanlayan’s raise comes at a time when India’s defence exports have skyrocketed from INR 686 Cr in FY14 to INR 23,622 Cr in FY25, reflecting both policy support and market demand for India-made military technology. The recent India-Pakistan border escalation and successful operations like “Sindoor” have further underlined the importance of AI-powered, indigenised defence systems.
Other startups riding this wave include Tonbo Imaging, which recently raised INR 175 Cr in a pre-IPO round, and Constelli, which secured USD 3 million (~INR 25.63 crore) earlier this year. Sanlayan, however, distinguishes itself through its vertical integration, acquisition-led growth, and focus on mission-critical hardware platforms.
Investor Confidence and Long-Term Outlook
Jungle Ventures partner Rishab Malik noted: “The revenue ramp-up at Dexcel, combined with strategic capital and Sanlayan’s operating discipline, reinforces our confidence in their ability to scale sustainably across the defence electronics value chain.”
With a disciplined approach blending organic R&D, inorganic acquisition, and deep partnerships, Sanlayan is emerging not only as a promising startup but as a potential cornerstone in India’s defence tech future.
Conclusion
Sanlayan Technologies Series A round marks a pivotal moment for India’s private defence sector. With solid technical foundations, visionary leadership, and a fast-expanding ecosystem, the company is poised to play a key role in India’s journey toward strategic autonomy in defence electronics.
For investors, policymakers, and industry stakeholders alike, Sanlayan exemplifies the next generation of Indian defence innovation—ambitious, indigenous, and indispensable.
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