Analysis · Government, Defense & Space

Indian defence tech startups gain momentum after Op Sindoor

By Startup Enthusiast · 18 January 2026

What they do

Zuppa is a Chennai-based drone technology startup

Defence tech startups raised about $78 million over the last 10 years, with $68 million in 2025 alone

Government schemes like iDEX and Make-I/Make-II now fund product development and offer clearer procurement routes

Operation Sindoor highlighted Indian drones, anti-drone tech, and AI-enabled smart weapons.
It also exposed India's import dependency in defence technology.
Before Op Sindoor, the tech sovereignty movement was scattered and mainly focused on cybersecurity.
After the event, the focus shifted to indigenisation of defence tech.
Defence tech startups raised about $78 million over the last 10 years.
Of that, $68 million was raised in 2025 alone.
Defence tech 2025 funding was about 13% of the total $533 million raised by all deeptech startups in India.

The government lowered entry barriers with subsidised land, shared infrastructure, and common testing facilities.
Central schemes like iDEX and Make-I/Make-II fund product development and prototyping.
The Defence Testing Infrastructure Scheme further reinforces support.
Government backing is creating predictable revenue pathways and reducing R&D timelines.
Early-stage investors are now seeing liquidity through secondaries, historically rare in deeptech.

Zuppa is a Chennai-based drone technology startup founded by Sai Pattabiram.
The dronetech sector is broader than defence tech and spans agriculture, healthcare, construction, and logistics.
Most defence tech capital is concentrated in dronetech.
Ammunition, defence signals, and AI-enabled systems are gaining traction.
Notable defence tech startups include Raphe mPhibr, IG Defence, ideaForge, and Garuda Aerospace.

Sridhar Parthasarathy (existing) — Cofounder and managing partner at Bluehill.VC.
Ranjeet Shetye (existing) — Venture partner at YourNest Venture Capital.

Product: Cyber-secure drones, autopilots, and autonomous navigation systems
Customers: The Indian Armed Forces, defense agencies, and commercial enterprises requiring secure unmanned systems
How it makes money: Designs, manufactures, and sells indigenous cyber-secure drones, autopilot hardware, and navigation software
What sets it apart: Offers entirely homegrown, cyber-secure autopilot and navigation systems that operate without Chinese parts and function in GPS-denied environments

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