SWITCH drone pictured here is one of the several UAVs made by Indian Start-Up IdeaForge

IdeaForge, which predominantly builds products for security agencies and defence forces, claims it has deployed over 1,000 drones since its inception

Bangalore: IdeaForge, a homegrown unmanned aerial vehicle (UAV) start-up, has raised Rs 15 crore in venture debt from BlackSoil as it looks to fulfil a recent order from the Indian Army worth about Rs 145 crore.

The Mumbai-based drone start-up said it will use the debt capital to meet its working capital requirements and service its large order book. The debt round came soon after existing investor Infosys
Ltd. said it would invest a further $1 million in the company.

IdeaForge, which predominantly builds products for security agencies and defence forces, claims it has deployed over 1,000 drones since its inception. Apart from Infosys, the company counts WRVI Capital and Qualcomm as its investors.

“The timing of the funding is opportune as we expect strong growth in our product pipeline. The funds, along with the recent fundraise from Infosys and other investors, will support ideaForge in the execution of our growing order book,” said Ankit Mehta, co-founder and CEO at IdeaForge.

A source told ET that the investments in IdeaForge came after waning investor interest in the company. While the company has diversified to focus on industrial and agricultural applications of drones, the market for such vehicles in India is still very small.

Further, delayed contracts and payments by government agencies had put a lot of pressure on the company to meet its working capital requirements. “Despite the government’s outward intentions to work closely with start-ups, the reality of doing so is very different,” said the source.

While India has liberalised several regulations for drones since 2018, the sector is yet to find many commercial players apart from government agencies.

Last year the government itself had become the biggest user of drones in India, with projects aimed at mapping remote rural areas, conducting surveillance and controlling crowds, and even fighting off locust swarms.

Large venture capital investors have largely refrained from backing UAV start-ups in India despite the numerous potential uses for drones. While there was a spurt in investment activity around December 2019, when Reliance Industries bought a majority stake in drone maker Asteria Aerospace, things have cooled down now.

Several entrepreneurs said that the sector will continue to languish until the government fully implements its Digital Sky policy, opens up the majority of Indian airspace for drones, and brings large drone manufacturers on board.