Quick Take
- Raphe mPhibr leads India’s top defence startups, raising $100 Mn (Rs 859 Cr) Series B in June 2025.
- Digantara, Tonbo Imaging, ideaForge, and Big Bang Boom round out the strongest 2026 contenders.
- India’s $78.3 Bn defence budget and iDEX grants up to Rs 10 Cr are powering this surge.
In This Article
Top defence startups in India in 2026 are led by Raphe mPhibr, which raised $100 Mn (Rs 859 Cr) in June 2025, the largest private drone funding in the country.
These ventures span drones, space surveillance, electro-optics, and combat systems. Strong government support drives the boom. India’s defence budget crossed $78.3 Bn for 2025-26, a +9.5% rise. The iDEX (Innovations for Defence Excellence) scheme now offers grants up to Rs 10 Cr, pulling in more than 600 companies since 2018. You can read the full Series B details on the IBEF official announcement.
StartupFeed Insight
The real signal here is not the funding size but the buyer. Operation Sindoor in May 2025 turned battlefield-tested startups like Raphe mPhibr into preferred vendors, shifting procurement away from foreign suppliers. Watch the IPO pipeline closely: Tonbo Imaging and Garuda Aerospace are both expected to file draft prospectuses. StartupFeed predicts at least two of India’s top defence startups will list publicly on Indian exchanges before December 2027, following ideaForge’s 2023 debut. Founders building deep-tech hardware with zero China dependency will command the highest valuations through this cycle. By Dr. Mayank Raj.
Top Defence Startups in India Ranked
The top defence startups in India in 2026 are ranked by total private capital raised, led by Raphe mPhibr at $145 Mn cumulative. Funding figures are sourced from company announcements and Tracxn. The table below covers the five strongest players by deal size and strategic traction.
| Startup | Focus Area | Total Raised | Notes |
|---|---|---|---|
| Raphe mPhibr | Military UAVs / drone swarms | $145 Mn (Rs 1,210 Cr) | Largest Indian aerospace raise; deployed in Operation Sindoor |
| Digantara | Space surveillance / missile tracking | $64.5 Mn (Rs 538 Cr) | $50 Mn Series B (Dec 2025); contracts with US Space Command |
| Big Bang Boom Solutions | Anti-drone / combat armor | ~$30 Mn (Rs 250 Cr) | $29.9 Mn Series C; indigenous defence IP integrator |
| Tonbo Imaging | Electro-optics / AI sensors | $20.4 Mn Series D (Rs 170 Cr) | Qualcomm-backed; expected to file IPO papers |
| ideaForge | ISR drones | Publicly listed (June 2023) | India’s leading drone maker; Rs 137 Cr Army order |
The standout fact is Raphe mPhibr’s 4x revenue growth over four years while staying profitable, rare for a hardware defence startup.
About Raphe mPhibr
Raphe mPhibr is a Noida-based aerospace and defence company founded in 2017 by brothers Vikash and Vivek Mishra. It designs and manufactures unmanned aerial vehicles (UAVs) entirely in-house, including the mR10 drone swarm and mR20 high-altitude logistics platform. The startup sold over 300 drones in the past year and is backed by General Catalyst, Think Investments, and Indian family offices.
What Makes These Startups Strong?
The strongest defence startups in India share one trait: deep indigenous engineering with minimal foreign component dependency. Raphe mPhibr builds engines, avionics, and AI flight systems locally, avoiding Chinese supply chains entirely.
“From the very beginning, our focus has been on research and manufacturing. We have always believed that true innovation comes from building things ourselves,” said Vivek Mishra, CEO, Raphe mPhibr.
This vertical integration matters because Western firms hesitate to sell dual-use components to India. Local manufacturing solves that bottleneck. It also makes these startups preferred vendors for India’s armed and border security forces, locking in steady government revenue.
Why Are Investors Backing Defence Tech?
Investors are backing India’s defence startups because government policy now guarantees demand. The India-Pakistan conflict in May 2025 pushed New Delhi to triple drone procurement to $470 Mn over 12 to 14 months, according to the Drone Federation of India.
“As geopolitical tensions rise, old rules are being thrown out the window and new ones are being written almost on a daily basis,” said Ankit Mehta, CEO, ideaForge.
Military tech funding in India rose 61x over a decade. The iDEX scheme’s largest grants jumped from $178K in 2021 to nearly $3 Mn in 2024. For venture funds, guaranteed minimum orders on working prototypes lower the risk that usually scares capital away from hardware. Full scheme details are on the Defence Innovation Organisation iDEX page.
How Do These Startups Compare?
India’s top defence startups compete across distinct niches rather than head-to-head, which spreads opportunity across the sector. Raphe mPhibr dominates military UAVs, while Digantara owns space-based missile tracking with contracts from US Space Command.
| Startup | Founded | Edge |
|---|---|---|
| Raphe mPhibr | 2017 | End-to-end UAV manufacturing, zero China dependency |
| Digantara | 2020 | Space surveillance satellites, valued above $65 Mn |
| Tonbo Imaging | 2012 | Electro-optic sensors, Qualcomm backing |
What sets the leaders apart is combat-tested deployment: Raphe drones flew in active operations, giving them a proof point most rivals cannot match.
What’s Next
The next milestone is the IPO wave. Tonbo Imaging and Garuda Aerospace are both preparing draft prospectuses, while Raphe mPhibr targets a public listing within two to five years. Digantara plans to bring a 30-satellite Andhra Pradesh facility online and expand into Europe through 2026-27. Which Indian defence startup will be the next to ring the IPO bell?
Frequently Asked Questions
Last updated: June 16, 2026 at 14:30 IST
Written by Dr. Mayank Raj. Published: June 16, 2026. Updated: June 16, 2026. Have a tip? Write to us at editorial@startupfeed.in.
