NewSpace Secures Rs 115 Crore in Funding for Defence Innovations

NewSpace, an innovative startup in the defence sector, is positioned to acquire Rs 115 crore ($13.3 million) in debt funding. This investment round is spearheaded by Lend Lease Company India Ltd, along with angel investor Ahmed Nalwala, ARA Investment, and contributions from 35 additional investors. In a recent regulatory filing with the RoC, NewSpace’s board approved the issuance of 115 compulsory convertible debentures, each valued at Rs 1,00,00,000, to secure the stated funds.

Investment Breakdown

Lend Lease is set to inject Rs 13 crore into this funding round. Angel investor Ahmed Nalwala and ARA Investment will each contribute Rs 10 crore. Additional investments include Rs 7 crore from NK Trust, Rs 5 crore from Weil Investments, and Rs 2 crore from the Gauri Khan Family Trust. The remaining Rs 66 crore will be sourced from 32 other investors, comprising numerous angel investors.

Intended Use of Funds

The capital raised will be allocated towards general operational costs, working capital needs, and capital expenditure essential for the startup’s growth. This strategic funding aims to facilitate the company’s expansion efforts.

About NewSpace Research & Technologies

Established in 2019, NewSpace Research & Technologies (NRT) is a prominent Indian aerospace and defence organisation focused on developing cutting-edge unmanned systems and drones. These technologies serve both military and civilian applications, including surveillance, communication, and logistics support. NRT collaborates with various government entities, including the Ministry of Defence, the NDRF, and the Ministry of Home Affairs, while also pursuing civil logistics opportunities.

Product Offerings

NRT has introduced a variety of specialized drone models, such as the BELUGA (a hybrid multi-rotor long-endurance UAV), NIMBUS (a multi-purpose electric UAV), MACKEREL (a loitering munition multi-rotor UAV), and NIMBUS-SCOPE (a tethered electric UAV).

Funding History and Financial Performance

According to various sources from the startup data intelligence platform, NewSpace has raised over $80 million to date, with notable investors like Volrado Venture Partners, Pavestone, and QRG Investments among others. However, for the fiscal year concluded in March 2024, the Bengaluru-based startup experienced a significant revenue drop to Rs 96.25 lakh from Rs 103 crore in FY23. Additionally, the company recorded a loss of Rs 62 crore for this period, contrasting with a profit reported in the previous financial year.