India’s aerospace and defence startup ecosystem has gained a strong boost as IIMA Ventures joins hands with Jaivel Aerospace to launch a new acceleration fund. The initiative focuses on backing early-stage startups that build advanced technologies in autonomy, materials, manufacturing, and secure communication. The fund reflects India’s growing ambition to develop a self-reliant and innovation-led aerospace and defence sector.
A Strategic Partnership for Deeptech Growth
IIMA Ventures and Jaivel Aerospace created this fund to nurture the next generation of aerospace and defence startups. The partnership combines IIMA Ventures’ experience in startup investment with Jaivel Aerospace’s deep expertise in manufacturing and engineering. The fund will back 8 to 10 startups at the pre-seed and seed stages. Each startup can receive up to $400,000 in funding. Along with capital, founders will gain access to mentorship, research and development facilities, and Jaivel’s global manufacturing network.
This collaboration aims to create a pipeline of Indian startups capable of competing in global aerospace and defence markets. IIMA Ventures will focus on identifying promising entrepreneurs, while Jaivel Aerospace will guide them through design, prototyping, and industrial-scale production. Together, they aim to bridge the gap between innovation and large-scale manufacturing, a challenge that often slows down early-stage deeptech startups.
Focus Areas: Building the Future of Aerospace and Defence
The fund targets startups building technologies across four crucial areas:
- Autonomy: Startups working on autonomous flight systems, drones, and robotics solutions will form a key focus. The rise of unmanned systems in defence and logistics offers vast opportunities. India’s strong engineering talent can help create competitive solutions in this area.
- Advanced Materials: Startups developing lightweight composites, heat-resistant alloys, and other novel materials will get special attention. Such innovations can enhance aircraft efficiency, reduce costs, and improve performance under extreme conditions.
- Advanced Manufacturing: Technologies like 3D printing, additive manufacturing, and smart factories have become essential for the next wave of aerospace innovation. The fund will back ventures that redefine how aircraft components are designed and built.
- Secure Communication Systems: With cybersecurity becoming a strategic defence concern, the fund will support startups developing encrypted communication, satellite-based data networks, and AI-driven threat detection systems.
By focusing on these areas, IIMA Ventures and Jaivel Aerospace want to position India as a global hub for advanced aerospace innovation.
Capital, Mentorship, and Access to Global Networks
Money alone cannot build successful aerospace startups. This fund recognizes that founders need more than just capital. Startups in this program will gain access to Jaivel Aerospace’s global manufacturing network, which serves top companies such as Boeing and Rolls-Royce.
Through this network, startups can test their ideas, validate their technologies, and scale production. IIMA Ventures will also connect founders with domain experts, engineers, and investors who understand the deeptech ecosystem. Mentorship will cover not only technology but also business development, regulatory strategy, and international market access.
The initiative gives young startups an edge by providing them with real-world manufacturing exposure, which is rare in early-stage deeptech investing.
IIMA Ventures’ Deep Roots in Aerospace and Defence
IIMA Ventures already has a strong track record in the aerospace, defence, and deeptech sectors. Its portfolio includes Sagar Defence, ePlane, Ideaforge, and Nabhdrishti, all of which work on cutting-edge aerospace technologies.
- Sagar Defence builds autonomous surface and underwater vehicles for defence and commercial use.
- ePlane develops hybrid electric flying vehicles aimed at urban air mobility.
- Ideaforge, one of India’s leading drone manufacturers, has already supplied drones to the Indian armed forces.
- Nabhdrishti focuses on AI-driven navigation and situational awareness systems.
Beyond defence, IIMA Ventures also supports space-tech startups such as Agnikul, PierSight, Galaxeye, and Bellatrix. These companies work on satellite launch vehicles, multi-sensor imaging, and space propulsion systems.
By combining its experience with Jaivel’s technical strength, IIMA Ventures now plans to double down on this fast-growing segment and nurture startups capable of shaping the future of aerospace and defence.
A Flexible, Founder-Friendly Fund Structure
Unlike many venture capital funds, the IIMA Ventures–Jaivel Aerospace initiative is not structured as an Alternative Investment Fund (AIF). Instead, it draws capital directly from the balance sheets of both organizations. This flexible setup allows the partners to make quick decisions and focus entirely on long-term impact rather than short-term financial metrics.
Both partners intend to expand the fund size in the future. Discussions are already underway with other corporate partners who share the goal of strengthening India’s aerospace ecosystem. By inviting more industry players, the fund aims to build a collaborative platform where startups, investors, and manufacturing giants work together.
Jaivel Aerospace: The Engineering Powerhouse Behind the Initiative
Jaivel Aerospace, founded in 2016 by Vipul Vachhani, has built a reputation as a high-end engineering and manufacturing company. The firm designs and implements intelligent manufacturing processes that help aerospace clients improve efficiency and precision.
Jaivel’s work covers three key domains — intelligent manufacturing, product engineering, and design. By combining data analytics, automation, and engineering, it helps major aerospace companies such as Boeing and Rolls-Royce optimize their manufacturing operations.
Vachhani’s vision has always centered around pushing the boundaries of what’s possible in advanced manufacturing. The partnership with IIMA Ventures allows Jaivel to extend that vision to the startup ecosystem, nurturing new technologies that can eventually integrate into global aerospace supply chains.
Strengthening India’s Strategic Capabilities
The timing of this fund aligns perfectly with India’s national priorities. The government’s focus on “Aatmanirbhar Bharat” (self-reliant India) and the Defence Production and Export Promotion Policy (DPEPP) encourages local innovation and manufacturing in defence and aerospace.
India’s private sector is increasingly contributing to the nation’s space and defence programs. Startups like Agnikul, Skyroot, and Ideaforge have already proven that deeptech ventures can scale and achieve global recognition. The new IIMA Ventures–Jaivel fund strengthens this ecosystem by identifying and nurturing the next wave of such innovators.
The aerospace and defence industries require long-term commitment and patience. By combining institutional support with industrial expertise, this partnership fills a crucial gap — early-stage funding for technically complex ventures.
Building a Global Standard for Aerospace Innovation
Through this initiative, IIMA Ventures and Jaivel Aerospace want to create more than just successful startups. They aim to set global benchmarks for innovation, quality, and sustainability in aerospace manufacturing.
Startups funded under this program will likely develop export-ready products and technologies. The combination of Indian engineering excellence and global best practices can help these ventures compete internationally. Over time, the initiative can position India not just as a consumer but as a creator of world-class aerospace solutions.
Looking Ahead
The IIMA Ventures–Jaivel Aerospace partnership marks an important milestone for India’s deeptech ecosystem. It connects the academic excellence of IIMA with the industrial expertise of Jaivel. The focus on early-stage founders ensures that even small teams with bold ideas can access world-class resources.
As the fund grows, it will likely attract more corporate and institutional partners, creating a larger ecosystem of innovation. With its emphasis on autonomy, materials, manufacturing, and secure communication, the initiative addresses the most critical areas of aerospace and defence technology.
If successful, the program could serve as a model for how academia, industry, and startups can collaborate to build strategic capabilities for a nation.
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