Defense startup NewSpace has raised Rs 26.6 crore or $3.21 million in a pre-Series B round led by existing backer QRG Investments and Holdings with a participation of Ahmed Ali Husain Nalwala and DS Group (Dharampal Satyapal Ltd) among others. With this, the company has marked its second fundraise in 2022.
The Bengaluru-based company will utilize the proceeds for capital expenditure and other corporate purposes, the filings added.
The board at NewSpace has passed a special resolution to issue 3,50,912 pre-Series B compulsory convertible preference shares (CCPS) at an issue price of Rs 758 per share to raise Rs 26.6 crore or $3.21 million, the company’s regulatory filing with the Registrar of Companies (RoC) shows.
QRG Investments and Holdings led the round with Rs 11.86 crore followed by Ahmed Ali Husain Nalwala and DS Group who poured in Rs 10 crore and Rs 2.96 crore respectively. Further, Preety Daljeet Singh and Santosh Daljeet, Greentech Power Pvt Ltd and Anurag Bhatnagar invested the remaining sum. This could be a part of a larger round in the making.
As per Fintrackr’s estimates, the company has been valued at around Rs 717 crore or $87 million (post-money). NewSpace has raised around $33 million to date including a $21 million in Series A round in February this year.
Founded in 2018 by Sameer Joshi, NewSpace Research and Technologies designs and develops persistent drones for earth observation and communications. NRT platforms operate from 5 km to 20 km with varied endurance (a few days to months). Besides the defense market, it will also focus on civil logistics operations for drones.
In September, the Indian Army signed two deals worth over Rs 200 crore for Swarm drones with NewSpace and Noida-based Raphe.
During FY22, NewSpace’s revenue from operations stood at zero (nil) as compared to Rs 15.5 crore in the previous fiscal year (FY21). As per the annual financial statement with the RoC, the company booked a loss of Rs 19 crore in FY22 against a profit of Rs 1.75 crore in FY21.