Exclusive: Defense startup NewSpace to raise Rs 115 Cr debt

Defense startup NewSpace is set to raise Rs 115 crore ($13.3 million) in debt funding led by Lend Lease Company India Ltd, angel investor Ahmed Nalwala, ARA Investment with the participation of 35 other investors.

The board at Newspace passed a resolution to approve the issue of 115 compulsory convertible debentures at a face value of Rs 1,00,00,000 each to raise the above mentioned amount, according to its regulatory filing filed with RoC.

Lend Lease will lead the round with an investment of Rs 13 crore, followed by angel investor Ahmed Nalwala and ARA Investment, who will invest Rs 10 crore each. NK Trust and Weil Investments will contribute Rs 7 crore and Rs 5 crore, respectively, while Gauri Khan Family Trust will join with Rs 2 crore. The remaining amount will be covered by 32 other investors, including several angel investors.

The company will utilize the proceeds from this funding for general operating and working capital requirements, as well as capital expenditure to support business expansion, the filing added.

Founded in 2019, NewSpace Research & Technologies (NRT) is an Indian aerospace and defense company that develops advanced unmanned systems and persistent drones. These are used for military and civilian purposes like surveillance, communication, and logistics. NRT works with various government agencies, including the Ministry of Defence, the NDRF, and the Ministry of Home Affairs, while also exploring civil logistics. 

The company also offers specific drone models such as the BELUGA (a hybrid multi-rotor long-endurance UAV), NIMBUS (a multi-purpose electric UAV), MACKEREL (a loitering munition multi-rotor UAV) and NIMBUS-SCOPE (tethered electric UAV)

According to startup data intelligence platform TheKredible, the dronetech company has so far raised over $80 million, from investors including Volrado Venture Partners, Pavestone, QRG Investments and others.

For the fiscal year ended March 2024, the Bengaluru-based startup’s revenue declined sharply to Rs 96.25 lakh from Rs 103 crore in FY23. The company also reported a loss of Rs 62 crore during the period, compared to a profit in the previous year.