360 ONE Asset Management has launched a ₹1,000 crore investment fund dedicated to defence and spacetech startups in India. The move signals growing confidence in India’s deep-tech ecosystem and the country’s ambition to become a global hub for aerospace, security, and strategic technologies. Through this fund, 360 ONE aims to support early and growth-stage companies that develop advanced solutions for defence forces, space missions, and national infrastructure.
The company announced the fund amid strong financial performance in the current fiscal year. This timing reflects both market optimism and the rising demand for indigenous technology in sensitive sectors. By focusing on defence and spacetech, 360 ONE places itself at the center of one of India’s fastest-growing innovation segments.
A response to India’s strategic priorities
India has increased its focus on self-reliance in defence manufacturing and space exploration over the past decade. Government programs such as Atmanirbhar Bharat and the opening of the space sector to private players have created new opportunities for startups. These policies encourage companies to design, test, and manufacture advanced systems within the country.
360 ONE designed this fund to align with these national priorities. The firm wants to back entrepreneurs who build technologies for surveillance, communication, navigation, propulsion, and advanced materials. These areas require heavy research investment and long development cycles, which traditional venture capital often avoids. By committing ₹1,000 crore, 360 ONE sends a strong message that long-term deep-tech innovation deserves serious capital.
Target sectors and investment focus
The fund will focus on defence technology, aerospace engineering, satellite systems, and space-based services. It will also support startups working on artificial intelligence for defence analytics, drone platforms, cybersecurity for critical infrastructure, and advanced manufacturing techniques.
360 ONE plans to invest across different stages, from early proof-of-concept ventures to companies ready for commercial scale. The firm aims to identify startups with strong technical teams, clear product roadmaps, and alignment with government and private-sector demand.
Unlike general tech funds that chase rapid exits, this fund will prioritize long-term value creation. Defence and spacetech products often require years of testing and certification. 360 ONE expects patient capital to play a key role in helping these companies reach maturity.
Rising investor interest in defence and spacetech
The global investment landscape shows increasing interest in defence and spacetech startups. Conflicts, geopolitical tensions, and climate challenges have pushed governments to invest in surveillance, satellite communication, and secure networks. India has followed the same path by increasing defence budgets and promoting domestic innovation.
Indian spacetech startups have already demonstrated their potential. Companies working on small satellite launches, earth observation, and space data analytics have attracted attention from both domestic and international investors. Defence startups have also started supplying equipment and software to the armed forces and allied agencies.
360 ONE wants to capture this momentum. The firm believes India can produce world-class companies in these sectors if investors provide capital and strategic guidance. This new fund positions 360 ONE as a key player in shaping that future.
Strengthening India’s startup ecosystem
The launch of this fund will likely influence other investors to explore defence and spacetech more seriously. Traditionally, many venture funds avoided defence-related investments due to regulatory complexity and long timelines. However, successful exits and policy clarity have started to change that mindset.
By committing ₹1,000 crore, 360 ONE creates confidence in the ecosystem. Startups can now approach investors with ambitious projects that require advanced research and infrastructure. Universities and research labs may also find stronger links with private capital as demand for innovation grows.
This fund also helps diversify India’s startup landscape. For years, fintech, e-commerce, and SaaS dominated venture funding. Defence and spacetech introduce a new pillar of growth that focuses on hardware, engineering, and national security.
Collaboration with government and industry
360 ONE plans to work closely with government agencies, defence organizations, and space institutions. These partnerships will help startups test their products in real-world environments and secure long-term contracts.
The fund’s managers have emphasized the importance of ecosystem collaboration. They want startups to access mentorship from defence experts, retired military professionals, and aerospace engineers. Such guidance can improve product design and reduce the risk of failure.
Large industrial players may also benefit from this initiative. Startups can act as innovation partners for established defence manufacturers and space companies. This cooperation can speed up technology transfer and commercial deployment.
Economic and employment impact
The defence and spacetech sectors generate high-skilled jobs and demand advanced education. Engineers, scientists, data analysts, and manufacturing specialists all play critical roles in these industries. By funding startups in this space, 360 ONE contributes to job creation and talent retention in India.
Young professionals who once looked abroad for aerospace or defence careers can now find opportunities at home. This trend supports India’s long-term goal of becoming a technology powerhouse.
The fund also supports regional development. Many spacetech and defence startups operate near research hubs and industrial corridors outside major metro cities. Investment in these regions can boost local economies and infrastructure.
Managing risks and challenges
Defence and spacetech investments come with unique challenges. Regulations, security clearances, and export controls can slow down operations. Product failures can result in high financial losses. 360 ONE acknowledges these risks and plans to manage them through careful selection and diversification.
The firm will likely build a portfolio that spreads risk across multiple technologies and stages. It will also rely on technical due diligence to assess feasibility and market demand. By combining financial expertise with domain knowledge, 360 ONE aims to create a balanced investment strategy.
The company also recognizes ethical and safety responsibilities. Technologies developed in this sector can affect national and global security. The fund will need strong governance frameworks to ensure responsible innovation.
A strategic milestone for 360 ONE
For 360 ONE Asset Management, this fund represents a strategic expansion beyond traditional asset classes. It strengthens the firm’s reputation as a forward-looking investor willing to support complex and impactful technologies.
The company’s strong quarterly performance has given it confidence to pursue ambitious initiatives. By entering defence and spacetech, 360 ONE diversifies its portfolio and positions itself in sectors with long-term relevance.
This move also enhances the firm’s brand among institutional and high-net-worth investors who seek exposure to future technologies. Defence and space offer both financial returns and national importance, which appeals to a broad investor base.
Shaping the future of Indian innovation
The ₹1,000 crore fund arrives at a critical moment for India’s innovation journey. Private participation in defence and space has gained acceptance and momentum. Startups now compete alongside established public-sector organizations and multinational firms.
360 ONE’s initiative can accelerate this transition. With adequate funding and support, Indian startups can develop indigenous satellites, drones, radar systems, and secure communication platforms. These achievements can reduce import dependence and increase export potential.
The fund also encourages a culture of bold experimentation. Entrepreneurs will feel more confident tackling ambitious problems in aerospace and defence when they know long-term capital stands behind them.
Conclusion
The launch of 360 ONE’s ₹1,000 crore defence and spacetech fund marks a major step in India’s deep-tech evolution. It reflects growing trust in domestic innovation and strong alignment with national priorities. By supporting startups in aerospace, security, and strategic technologies, the fund aims to build companies that shape India’s future capabilities.
This initiative goes beyond financial investment. It promotes self-reliance, job creation, and global competitiveness. If executed effectively, the fund can become a catalyst for a new generation of Indian defence and spacetech leaders.
As India looks toward the next decade of innovation, 360 ONE’s bold move sends a clear signal: the future of startups will not only run on apps and software but also on rockets, satellites, and secure technologies that protect and empower the nation.
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