Can Indrajaal Build A ₹100 Cr Business Protecting India’s Skies?

In September 2019, a swarm of low-cost drones launched by Houthi rebels struck Saudi Aramco’s oil processing facilities, knocking out nearly half of Saudi Arabia’s oil production. The attack sent shockwaves across the world, exposing how inexpensive flying machines could bring critical infrastructure to a standstill.

Back home, the founder of Indrajaal, Kiran Raju, was closely observing everything, including a rise in drone incursions along India’s borders. He foresaw that Indian security agencies would soon need technology to detect hostile drones and stop them before they could launch an attack.

Indrajaal is looking to tackle this growing threat through its AI-powered counter-drone technology designed to detect, track and neutralise hostile drones, protecting military installations and critical infrastructure from aerial threats. Founded in 2020, the defence tech startup is developing an advanced, AI-powered counter-drone systems that combine proprietary hardware, computer vision and machine learning. It has so far raised about $5.5 Mn in external funding from the likes of India Accelerator and Finvolve. 

The founder’s journey into autonomous robotics began long before Indrajaal. After studying at Carnegie Mellon University, he founded Grene Robotics in 2006 to develop autonomous technologies for defence applications. As drones became cheaper and more advanced, he spun off Indrajaal from Grene Robotics to develop systems capable of detecting and countering aerial threats.

Inside Indrajaal’s Defence Tech Capabilities 

Traditional counter-drone systems typically rely on standalone technologies to jam or shoot down hostile drones. However, this approach becomes less effective when friendly and hostile drones operate in the same airspace.

Indrajaal addresses this limitation through SkyOS, its AI-powered platform that brings together multiple detection and defence systems.

SkyOS uses real-time data from radars, radio-frequency sensors and cameras to detect, track and identify aerial threats. Based on this information, it can recommend or automatically execute countermeasures.

The startup also offers an AI-powered mobile counter-drone vehicle, Ranger, designed to detect and neutralise threats while on the move. Once a hostile drone is identified, the system can jam its signals, use Repulsor to interfere with its navigation or deploy SkyCop, an autonomous interceptor drone.

All these products operate within Indrajaal’s integrated defence architecture, allowing the company to offer different solutions for different security requirements.

Indrajaal Spreads Its Wings

The startup operates in India’s growing defence tech sector, which is projected to become a $19 Bn market opportunity by 2030. Government incentives, homegrown innovation and the push for self-reliance in defence are driving this growth.

The startup has already deployed its systems at critical installations belonging to the Indian Army, Indian Navy and agencies under the Ministry of Home Affairs.

Indrajaal makes money through these deployments, supplying customers with a combination of hardware, software, installation and long-term maintenance services tailored to their security requirements.

Here’s how its growth trajectory looks like:

• Revenue grew from around ₹34 Cr in FY25 to ₹100 Cr in FY26, with a target of ₹300 Cr in FY27
• Plans to raise ₹420 Cr in its upcoming Series A round
• Looking to ramp up manufacturing capacity, strengthen R&D and enter markets across the Middle East and Europe
• Plans to expand its workforce from around 100 to nearly 160 employees over the coming year
• Aims to develop a broader autonomous airspace ecosystem supporting civilian drone corridors and autonomous aerial transport

Inc42 Take: Government Contracts Could Be Indrajaal’s Achilles’ Heel

Indrajaal appears to have found its financial footing in the market with its novel tech stack. But, the startup is heavily tied to government contracts, which carry long validation windows and multi-year sales cycles. This could expose the startup to high working-capital strain.

On top of this, Indrajaal operates on a customised business model, which can strain gross margins and make scaling unit economics significantly harder. There are also supply chain risks and cost inflation that can quickly erode profitability and margins.

Meanwhile, competition also shows no signs of slowing down. As more global giants enter the fray, the startup will be up against players with deeper pockets and mature distribution channels. Domestically, too, rapid defence indigenisation has encouraged rivals to launch rival counter-drone systems, threatening pricing power.

While Indrajaal has built a battle-tested defence business, sustaining its ambitious financial trajectory will require transitioning beyond defence contracts to roping in private enterprises and successfully executing its international expansion across high-budget defence markets.

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