Venture Catalysts leads $1.8 mn funding round in Optimized Electrotech

Mumbai: Venture Catalysts has led a $1.8 million funding in Optimized Electrotech Pvt. Ltd., marking its first investment in the defence sector.

The funding round also saw participation from Optimized Electrotech’s existing investor GVFL Ltd. (formerly Gujarat Venture Finance Ltd.) and other angel investors. Founded in 2017, the Ahmedabad-based defence tech startup produces indigenous surveillance systems for security forces, national assets, defence and aerospace companies.

Liking this story?

Get one mail covering top tech news of the day in under 5 minutes!

Please wait…

“Our investment vision aligns with that of Prime Minister Narendra Modi’s idea to make India self-reliant in the defence sector. We expect more startups to use technology to strengthen the country’s safety and security amidst growing threats and skirmishes on the borders,” said Apoorva Ranjan Sharma, founder of Venture Catalysts.

In Union Budget 2021-22, the Centre allocated Rs 1.35 lakh crore to the defence sector for capital expenditure, including procurement of new weapons, aircraft, warships, and other military hardware. This is a huge opportunity for Optimized Electrotech, the company said.

“Our mission is to provide accurate, actionable and real-time insights about surroundings through our platforms. By 2030, Optimized Electrotech shall be amongst the global leaders in all imaging surveillance applications under its platforms across land, sea, air, and space,” Optimized Electrotech’s co-founder Sandeep Shah said. “At present, India imports 55% of its defence needs, but soon it will be a market dominated by indigenous products due to a favourable government policy.”

READ  After a huge delay to Windows 10’s redesign, there's now more bad news for Microsoft fans

Optimized Electrotech already has a sales funnel worth Rs 95 crore from Indian and global original equipment manufacturers (OEMs) for the next few years. The funds would be used to design new-age surveillance systems, product innovations, and build more prototypes to be used in the railways sector and smart city and intelligent border projects, which have a market potential of $7.3 billion.

India currently has nearly 200 startups in the defence technology space.



Please enter your comment!
Please enter your name here