Indian defense startups – An Introduction

Between 2015 and 2019, India held the position of the second-largest arms importer in the world, importing approximately 9.2 percent of the world’s weapons. The only country that imported more weapons than India was Saudi Arabia, with a rate of 12 percent. This is noteworthy because India’s defense budget was the third largest in the world in 2020, reaching 4.71 lakh crore rupees or 65.86 billion dollars. A significant portion of this budget is allocated to imports.

According to the Defense Research and Development Organization (DRDO) chief, G. Satish Reddy, India only produces about 45 to 50 percent of its defense needs. The rest of the military hardware and software is purchased from other countries, which creates a dependency on these nations.

Countries like Russia, France, and Israel are major suppliers to India, and they have control over the pricing and availability of these goods. They can even refuse to sell to India if they choose. These dependencies pose significant challenges for India’s defense strategy.

The government push

India is now striving to become self-sufficient in manufacturing its military hardware and software. The Indian government recently announced a negative list of 101 imports, including various weapon systems, vehicles, and equipment. Within the next five to seven years, India plans to procure these items solely from domestic manufacturers. It is estimated that the local defense industry will receive contracts worth upwards of four lakh crore rupees or 55 billion dollars.

While this process may take a decade and a half or more to complete, immediate efforts have been made to allocate a significant portion of the military capital budget for 2022 to 2023 towards locally produced weapons and systems.

Despite these efforts, India’s presence in the global arms export market is relatively small. Between 2016 and 2020, India accounted for just 0.2 percent of the market. However, India aims to change this in the next five years, targeting defense and aerospace exports worth 5 billion dollars or 35,000 crore rupees by 2025.

Now, shifting focus to defense startups, it is important to note that most startups in this sector face significant challenges. Business-to-Government (B2G) startups, in particular, face a high failure rate as governments are more selective when it comes to products and services compared to businesses or consumers. However, B2G startups are known for their tenacity, innovation, and impressive solutions, making them worth highlighting.

In this article, we will highlight ten of India’s top defense startups that are creating hardware and software for the military.

Number 10 : Big Bang Boom Solutions

Chennai-based Big Bang Boom Solutions, founded by Arshiva and Praveen Duarkanat in 2018. Big Bang Boom Solutions has developed the 360 Advanced Battle Interface, designed to enhance the visual capabilities of T-series tanks used by the Indian Armed Forces.

This interface provides soldiers inside the tanks with a 360-degree view, overcoming the limitations of visibility caused by the tank’s metal enclosure. Big Bang Boom Solutions was a winner of the Innovation for Defense Excellence Challenge (IDEX) and has also developed other innovative products such as anti-drone defense systems, combat armor, and more.

Number 9 : Sagar Defense Engineering

Sagar Defense Engineering, founded by Nikunj Parashar and Raydul Babar in 2016. Sagar Defense Engineering has developed Genesis, an AI-enabled device that can be programmed to carry out smart and specific tasks that are unsafe for humans.

It can be retrofitted to any manned vessel, turning it into an unmanned autonomous vessel. They have also developed UAVs and a fully autonomous charging and launching system for drones called Skydock, in partnership with the DRDO.

Number 8 : Optimized Electrotech

Optimized Electrotech, founded by Anil Yakala, Dharensha Kuldeep Saxena, Purvisha, and Sandeepsha in 2017. Optimized Electrotech is an electro-optic startup that builds security and surveillance systems for India’s military.

Their products use high-resolution sensors and cameras to capture detailed images, even in low-light conditions. These images are then processed to detect armed individuals, read license plates, and match faces with potential suspects. Their products include Infivision, Nokt Fission, and Clear Vision, offering capabilities such as tank detection, low-light surveillance, and all-weather surveillance.

Number 7 : Dimension NXG

Dimension NXG, a Bengaluru-based augmented reality startup founded by Pankaj Raut, Abhijit Patil, and Abhishek Tomar in 2014. Dimension NXG has developed AjnaLens, an augmented reality product for defense applications.

Their defense-focused version, AjnaBolt, is India’s first AI-powered mixed reality defense glasses. These glasses enable soldiers to share and view live mission feeds, identify targets, transmit information, and use 3D holographic maps for navigation. AjnaLens can be controlled using touch, voice commands, eye gestures, and hand gestures.

Number 6 : Finveli

Finveli, a Chennai-based UAV startup founded by Gokula Nanda, Yuvaraj, Asaki Durai, and Uanku in 2014. Finveli creates drones for defense and commercial purposes. Their flagship drone, Vero, is capable of carrying grenades, conducting surveillance, and transporting ammunition and food to soldiers. They are also working on an advanced version capable of navigating harsher conditions.

Number 5 : IdeaForge

IdeaForge, a Mumbai-based drone manufacturer founded by IIT graduates Ankit Mittal and Ashish Bhat in 2010. IdeaForge is India’s largest drone manufacturer for defense, homeland security, and industrial applications.

Their flagship drone, the Switch, is a vertical takeoff and landing UAV that offers long flight durations, high altitudes, and high-resolution image transmission. The Indian Army has signed a 20 million dollar contract with IdeaForge for the supply of these drones.

Number 4 : IROV

IROV, an underwater drone startup based in Kochi. Founded by Johns T. Mathai and Kanna Palaniappan in 2016, IROV has developed India’s first underwater drone, called the IROV Tuna. These remotely operated vehicles (ROVs) are designed to replace human divers in dangerous underwater missions.

The IROV Tuna can reach depths of up to 100 meters, transmit live HD video, and operate for over three hours. It has been used for pilot projects and has onboarded the DRDO as its first customer.

Number 3 : Cron Systems

Gurugram-Based Cron Systems, founded by Tushar Chhabra and Tommy Katzenellenbogen in 2015. Cron Systems is an IoT-based startup that develops security solutions for India’s borders. Their product, Kovach, is a series of fence posts equipped with sensors that can detect unauthorized crossings between posts.

The system provides real-time alerts to the command center, enabling timely action by soldiers. They also utilize drones and rovers for assessments when necessary.

Number 2 : Axio Biosolutions

Axio Biosolutions, a Bengaluru-based MedTech startup founded by Leo Mavely in 2008. Axio Biosolutions has developed AxioStat, an FDA-approved wound care product. AxioStat is a hemostatic dressing that controls bleeding from gunshot wounds and blast injuries.

The positively charged biomaterial, chitosan, accelerates coagulation when in contact with blood. AxioStat significantly improves the survival rate for soldiers with such injuries. Axio Biosolutions also offers other wound care products and has raised significant funding from various investors.

Finally, at number 1 : Tonbo Imaging

We have Tonbo Imaging, a Bengaluru-based startup founded by Arvind Lakshmikumar, Ankit Kumar, Sudeep George, and Cecilia D’Souza in 2012. Tonbo Imaging specializes in advanced imaging and sensor systems for the defense industry.

Their product, STAR (See-Through Armor), combines day and night sensors to provide a 360-degree view for armored vehicles. Tonbo Imaging’s technology is used in tanks and showcased at events like Aero India. They export their defense hardware to 25 countries, including the United States and Israel.

These are just a few examples of the top defense startups in India, showcasing their innovative solutions for the military.

Disclaimer: The views expressed in this blog are for educational purposes only. This is not professional advice. Consult your financial advisor before investing.