Indian drone startup Raphe mPhibr has raised US$100 million in a series B funding round led by General Catalyst.

The Noida-based company plans to use the funds for research and development and to increase local production capabilities.

Founded in 2017 by siblings Vikash and Vivek Mishra, Raphe mPhibr specializes in drones for military and border surveillance.

The company currently offers nine models, including the mR10 operational drone swarm and the Bharat lightweight drone for surveillance.

Its clients include various Indian government agencies, such as the Army, Navy, Air Force, and border security forces.

The startup has partnered with international firms, including Germany’s Hensoldt and France’s Safran, to develop advanced sensors.

The company employs around 600 people and has been profitable for four years, raising a total of US$145 million in equity funding to date.

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🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ India’s strategic pivot from import dependency to indigenous drone manufacturing

India’s drone journey reflects a dramatic evolution from complete import dependency to growing self-reliance, with Raphe mPhibr exemplifying this transition.

The country’s initial drone capabilities came entirely from foreign sources, primarily Israel, which provided IAI Heron and Searcher drones after the 1999 Kargil War revealed critical surveillance gaps in mountainous terrain 1.

This dependency continued with major acquisitions like the $280 million deal for Heron drones in 2013 and a $400 million contract for 10 armed Heron TP drones 2.

India’s early attempts at indigenous production faced significant setbacks, with the DRDO’s Nishant project being canceled after all four units crashed during trials 1.

The current government’s restrictions on Chinese components, which previously constituted 70% of drone parts, have created both challenges and opportunities, potentially increasing production costs by up to 50% while fostering domestic innovation 3.

Raphe mPhibr’s approach of developing flight controllers, batteries, and structural components in-house represents the new model of self-sufficiency that India is striving for, though the company still imports radars and high-end cameras 4.

2️⃣ Military drones reshaping regional conflict dynamics despite cost barriers

The recent India-Pakistan conflict has accelerated a fundamental shift in warfare tactics, with both nations deploying drones extensively despite possessing advanced fighter jets and missile systems.

India’s deployment of Israeli systems like the IAI Searcher and Heron for intelligence, surveillance, and reconnaissance (ISR) alongside Harop drones for precision strikes demonstrates how unmanned systems are becoming central to modern military doctrine 5.

Pakistan’s counterstrategies using Turkish Bayraktar and Chinese Wing Loong II drones highlight the competitive landscape in regional drone capabilities 5.

This operational shift has triggered a significant investment surge, with India planning to triple its drone spending to $470 million over the next 12-14 months and projecting procurement of over 5,000 UAVs worth approximately $3 billion in the coming decade 1, 4.

The drone race is complicated by production challenges. Raphe mPhibr’s CEO noted that “doing research in India is slightly more expensive compared to the US” due to infrastructure limitations and difficulties in finding qualified personnel to operate specialized machinery 4.

Despite these barriers, the economic efficiency of drones compared to manned aircraft is driving their adoption, offering a low-cost, high-impact alternative that reduces risk to military personnel 5.

3️⃣ From startup to strategic asset: The evolving drone entrepreneurship landscape

Raphe mPhibr’s growth trajectory, from a 2,000-square-foot research facility in 2017 to a 650,000-square-foot combined facility today, illustrates how Indian drone startups are scaling at unprecedented rates to meet national security demands.

The company’s development approach began with a 3-4 year period focused on understanding military operational needs before building products, demonstrating how defense tech startups require longer research cycles than typical software startups 4.

Their expansion has been supported by significant capital infusion, with $145 million in total equity funding enabling both research capabilities and manufacturing scale 4.

The government’s Production-Linked Incentive (PLI) scheme, though modest at ₹57 crore ($7.6 million) in the 2025-26 budget, represents a 7.5% increase aimed at fostering this sector’s growth, though industry experts argue that ₹1,000-2,000 crore would be needed for global competitiveness 6.

Raphe mPhibr’s workforce structure, with 150 employees dedicated to research and 250 to production out of 600 total staff, highlights the specialized talent requirements of the sector 4.

The company’s international partnerships with Germany’s Hensoldt, France’s Safran for sensors, and Dassault Systèmes for simulation software demonstrate how Indian drone startups are leveraging global expertise while building domestic capabilities 4.

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