Chennai-based drone manufacturing startup, Garuda Aerospace, is set to soar to new heights as it gears up for an initial public offering (IPO) in mid-2024. With ambitious plans, the company aims to raise a pre-IPO round by January, aligning its trajectory with a public listing in June or July of the coming year.
The impetus behind Garuda Aerospace’s accelerated IPO plans lies in the substantial government investment pouring into the agriculture sector. This influx of funds has not only captured national attention but has also attracted interest from venture capital funds eager to support agri-drone companies. Backed by cricketing icon Mahendra Singh Dhoni, Garuda Aerospace stands to benefit significantly from the Indian government’s allocation of Rs 1,261 crore for deploying 15,000 kisan drones nationwide.
Garuda Aerospace has secured approvals from various state governments, including Tamil Nadu, Maharashtra, and Kerala, for subsidies on its agricultural drones. These subsidies, ranging between 40-50%, are part of the government’s broader initiatives to encourage the use of drones in agriculture. These technologically advanced drones aid farmers in tasks such as identifying crop health, soil analysis, disease monitoring, and pesticide spraying, addressing challenges related to manpower shortages.
Founder and CEO Agnishwar Jayaprakash emphasized, “We are accelerating our IPO plans to expand our operations, intensify our research and development efforts, and better serve the agricultural community.” Garuda Aerospace boasts a commanding 55% market share in the agricultural drone industry and diversifies its drone manufacturing capabilities for applications like food delivery, defense infrastructure, solar panel cleaning, and surveillance.
Valued at an impressive $250 million, Garuda Aerospace has successfully raised $27.3 million across six funding rounds since its inception in 2021, according to Tracxn data. In October, the company secured Rs 25 crore in funding through a bridge round led by Venture Catalysts and WeFounderCircle to meet working capital requirements. Notable investors in Garuda Aerospace include Ocgrow Group of Companies, Silver Swan Capital, Claris Capital, and the recent participation from Venture Catalysts and WeFounderCircle.
Garuda Aerospace’s commitment to innovation and its strategic positioning in the drone market align with the growing demand for drone technology across various sectors in India, making its IPO journey a noteworthy development in the tech and aerospace landscape.