In a move that underscores the growing momentum in India’s indigenous defence sector, Sanlayan Technologies, a Bengaluru-based aerospace and defence startup, has secured ₹186 crore in an oversubscribed Series A funding round. Leading investors Ashish Kacholia, Lashit Sanghvi, and Jungle Ventures backed the round, joined by existing investors Gemba Capital, Singularity Ventures, and new participant Shastra VC.
The successful funding round signals strong investor belief in Sanlayan’s vision and execution. It also reflects growing interest in the intersection of technology and national security, especially as India prioritizes self-reliance in critical defence capabilities.
Strategic Capital Infusion Strengthens Growth Vision
Sanlayan didn’t raise this capital on potential alone—it did so after demonstrating consistent execution, strategic foresight, and a unique hybrid approach to defence technology development. This Series A round builds on its earlier ₹36 crore raise in March 2024, when Jungle Ventures supported the company through its First Cheque@Jungle platform.
With the fresh capital, Sanlayan plans to scale across every critical dimension: talent, technology, manufacturing, and M&A. The startup has already begun to channel funds toward expanding its engineering team, strengthening its R&D facilities, and acquiring complementary defence capabilities.
AESA Radar and UUV Programs Lead the Innovation Charge
Sanlayan currently develops Active Electronically Scanned Array (AESA) Radar systems for India’s Unmanned Underwater Vehicle (UUV) program. This initiative showcases the company’s commitment to supporting next-gen warfare capabilities through in-house R&D.
Unlike firms that license or import technologies, Sanlayan invests in proprietary systems that meet India’s exacting defence specifications. Its AESA Radar initiative exemplifies how the company combines scientific depth with mission focus to build future-ready defence solutions.
Sanlayan doesn’t operate in isolation either. It has formed strategic partnerships with five Indian startups and several foreign OEMs (Original Equipment Manufacturers). Together, these collaborations enhance product diversity and deepen innovation capacity.
Acquisition of Dexcel Electronics Adds Muscle
Sanlayan’s acquisition of a majority stake in Dexcel Electronics marked a transformative milestone. Dexcel has built a strong track record by contributing to landmark defence programs like Jaguar, Sukhoi, LCA Tejas, and Chandrayaan-3. The acquisition significantly expanded Sanlayan’s domain expertise, manufacturing footprint, and credibility within the defence ecosystem.
Since taking over Dexcel, Sanlayan has scaled its design and manufacturing operations. It has ramped up revenue, improved delivery timelines, and deepened customer trust—all within six months. This fast-paced integration showcases the leadership team’s operational discipline and strategic acumen.
Rishab Malik, Partner at Jungle Ventures, praised Sanlayan’s performance:
“Sanlayan’s ability to execute at both operational and strategic levels has been outstanding. The revenue ramp-up at Dexcel, combined with strategic capital and Sanlayan’s operating discipline, reinforces our confidence in their ability to scale sustainably across the defence electronics value chain.”
A Three-Pronged Capability Model
Sanlayan follows a distinct, three-pronged strategy to build its defence technology stack:
- Acquiring and Scaling Indian MSMEs
The company actively scouts and acquires small and mid-sized Indian defence firms with proven track records. Instead of building everything from scratch, Sanlayan injects fresh capital, modernizes systems, and integrates operations to accelerate impact. - Building Proprietary Technologies In-House
With a strong bench of engineers and scientists, Sanlayan invests in original product development. It designs critical components such as AESA radars, electronic warfare systems, and CUAS (Counter-Unmanned Aerial Systems), ensuring ownership of core IP. - Forging Global Partnerships
Sanlayan taps into global defence innovation by partnering with select OEMs. These alliances allow the company to co-develop technologies and bring them to market faster—while retaining control over localization and system integration.
This unique blend of acquisition, invention, and collaboration sets Sanlayan apart from traditional defence contractors. The model offers agility, cost-efficiency, and scale—all crucial to meeting the demands of modern warfare and homeland security.
Strong Leadership Backed by Purpose-Driven Investors
Sanlayan’s leadership doesn’t chase vanity metrics. Instead, it aligns its growth ambitions with a deeper mission: strengthening India’s sovereign defence capabilities. This mission-first approach has attracted a unique set of investors.
Veteran investor Ashish Kacholia, known for backing long-term winners, explained his decision to support the company:
“What drew us to Sanlayan was their clear understanding of India’s defence electronics landscape and their hybrid strategy to address it. This is not just a business opportunity; it’s a national imperative.”
Investor interest grew not just from financial upside, but also from the company’s strategic role in India’s defence narrative. By blending operational excellence with patriotic purpose, Sanlayan convinced investors that it can scale both profitably and responsibly.
Massive Talent Expansion Underway
Sanlayan has laid out ambitious hiring goals for the coming months. It plans to increase its engineering workforce fivefold within six months. This includes recruiting R&D scientists, defence technologists, retired armed forces veterans, and senior leadership from both public sector undertakings (PSUs) and private defence companies.
The company understands that building advanced defence technologies requires more than funding. It demands deep domain expertise, operational experience, and battlefield knowledge. By hiring seasoned talent, Sanlayan ensures its solutions remain robust, scalable, and combat-ready.
Building for India’s Defence Inflection Point
Sanlayan’s growth aligns with a broader national context. India stands at a once-in-a-generation inflection point in its defence sector. The government continues to push for indigenisation, private sector participation, and technology innovation. Sanlayan sits at the intersection of all three.
CEO Rohan Gala emphasized this urgency:
“India’s defence sector is at a once-in-a-generation inflection point. We will continue to acquire capabilities both organically and inorganically. We are allocating capital for suo motu development of critical technologies for CUAS and EW systems.”
He also highlighted recent progress:
“In the last six months, we have strengthened Dexcel’s design and manufacturing capabilities and are now gearing up to execute large-scale indigenisation and upgrade programs.”
Sanlayan’s forward-thinking approach enables it to proactively develop technologies that India hasn’t yet tendered—but will soon need. This foresight positions the company as a partner of choice for future defence procurement.
Conclusion: A Bold Force in the Making
Sanlayan Technologies doesn’t just want to participate in India’s defence boom—it wants to lead it. The ₹186 crore Series A round provides it with the ammunition to scale operations, deepen innovation, and expand its impact across India’s defence electronics value chain.
By focusing on strategic acquisitions, original R&D, and global collaborations, Sanlayan builds a blueprint for what a modern Indian defence company should look like. It blends the agility of a startup with the vision of a national partner.
As India accelerates its defence modernisation journey, Sanlayan stands ready to contribute—not just with products, but with purpose, precision, and people.