Indian drone startup Raphe mPhibr raises $100M as military UAV demand soars

Raphe mPhibr, an Indian drone startup, has successfully raised $100 million in an all-equity Series B funding round led by General Catalyst. This significant capital injection is aimed at enhancing the company's research and development, as well as its local manufacturing capabilities, in response to the surging demand for drones in military applications and border surveillance. Drones are becoming integral to modern military operations worldwide. Recent conflicts have seen nations adopting drones for swift infiltration and impactful strikes. A notable instance is the recent India-Pakistan conflict, where both sides deployed drones extensively, despite having sophisticated fighter jets and missile systems. This escalation has prompted New Delhi to increase its drone budget to $470 million over the next year, according to the Drone Federation of India, which represents more than 550 companies. While China leads the global drone manufacturing landscape, Raphe mPhibr is poised to enhance India's self-reliance in this domain. Established in 2017 by siblings Vikash and Vivek Mishra, the Noida-based startup currently offers a diverse range of nine drones, with payload capacities ranging from 4.4 pounds to 441 pounds and operational ranges between 12 to 124 miles. Their lineup includes the mR10 drone swarm, the mR20 for high-altitude logistics, the X8 maritime patrol platform, and the Bharat lightweight drone for tactical surveillance in challenging environments. The startup serves over 10 clients, all of whom are Indian government entities, including the Army, Navy, and Air Force, along with various armed police forces. The idea for Raphe mPhibr was born in 2016 while Vikash was studying at MIT and Vivek was at Georgia Tech. Initially, the co-founders dedicated several years to understanding the operational needs of defense forces, subsequently transitioning to drone development to address these requirements. Vivek Mishra highlighted their goal of innovating without constraints, stating, "Since the need is new and the area is niche, we focused on both research and manufacturing." Starting with a modest 2,000-square-foot research facility, Raphe mPhibr has expanded to a substantial 650,000-square-foot facility thanks to recent funding, which also saw participation from existing investor Think Investments. The startup is committed to domestic production, manufacturing its flight controllers and components while planning to produce radars and high-end cameras in-house within the next 18 months. Vivek emphasized that they do not depend on Chinese suppliers for their components, which helps mitigate some supply chain issues. He acknowledged the challenges faced in setting up their facilities and conducting research in India, citing higher operational costs compared to the U.S. To overcome these hurdles, Raphe mPhibr has invested in training its workforce from the outset. The company is also leveraging artificial intelligence for object detection in surveillance, adapting to electronic warfare, and utilizing UAV swarm intelligence for decentralized decision-making. In recent months, the startup has forged partnerships with notable international firms such as Germany’s Hensoldt and France’s Safran to develop new sensors, as well as with Dassault Systèmes for software simulation. Looking ahead, Raphe mPhibr plans to venture into international markets, having participated in defense air shows worldwide, including in Dubai and Paris. Vivek noted that they have acquired some export licenses and are in advanced discussions with global government agencies, anticipating deliveries in the near future. Over the past year, Raphe mPhibr has sold more than 300 drones, experiencing up to a fourfold revenue increase over the last four years. The company has been profitable for each of those years and aims to go public within the next two to five years. With around 600 employees, including 150 in research and over 250 in production, the startup has raised a total of $145 million in equity funding to date.