Chennai-based drone manufacturer Garuda Aerospace has raised 10 million dollars in a pre-IPO round, valuing the company higher ahead of a planned public listing.

The round saw participation from institutional investors backing India’s growing drone ecosystem. Garuda said the capital will fund manufacturing expansion, research and development, and working capital as it scales deliveries across agriculture, defence and industrial inspection segments.

Founded in 2015, Garuda Aerospace manufactures a range of drones for crop spraying, surveillance and mapping. The company has benefited from government production-linked incentives for drones and a push to indigenise unmanned systems for the armed forces.

India’s drone industry has grown rapidly since liberalised rules in 2021, with startups competing for defence contracts and agricultural demand. Analysts say consolidation is likely as scale and certification requirements favour larger players.

The pre-IPO round positions Garuda among a small set of Indian drone companies approaching the public markets. The company has not disclosed a timeline for filing its draft prospectus, but bankers expect drone and defence-tech listings to draw strong retail interest.