Funding · Government, Defense & Space

Newspace Research in talks to raise $35-40 million Series C

By Startup Enthusiast · 4 September 2026

What they do

Newspace Research builds high-altitude long-endurance drones and AI-powered swarm systems for defence

It is in talks to raise $35-40 million in a mix of equity and debt, led by existing investor 360 ONE Asset

The round has faced difficulty since last year, and debt investors will proceed only after equity is secured

Newspace Research and Technologies (NRT) is in talks to raise $35-40 million in a Series C round.
The funding will be a mix of equity and debt.
Existing investor 360 ONE Asset has given a term sheet to lead the equity portion.
Avendus and some family offices are also involved in the round.
Debt investors Trifecta Capital and Stride Ventures are likely to participate.
The debt investors will proceed only after the equity component is secured.
The company aims to close the round by December.

NRT has been fundraising since last year, and the round has faced difficulty.
The company told investors it expected Rs.1,000 crore in revenue over the past three years, but that figure has not changed much.
Deep tech investments are rising in sovereign areas such as defence, manufacturing, telecom, and chip design.
The deep tech sector raised $2.4 billion across 213 deals so far this year, compared to $1.6 billion across 458 deals last year.

NRT builds high-altitude long-endurance (HAPS) drones that can stay airborne for months at 5-20 km height.
It also builds AI-powered swarm drone systems for defence and civilian use.
The company works in close partnership with DRDO (Defence Research and Development Organisation).
In January 2025, NRT received an $18.6 million government contract for solar-powered UAVs.
Revenue fluctuates partly due to government contracts with delayed payments.

360 ONE Asset (lead) — Existing investor in deep tech companies like Digantara, Exponent Energy, SEDEMAC, and Sisir Radar. Announced a Rs.1,500 crore defence and aerospace fund in January.
Avendus (participant)
Trifecta Capital (participant) — Debt investor.
Stride Ventures (participant) — Debt investor.