Drone startup Garuda Aerospace is expecting remarkable growth in its operating income, with over 200% projected growth in FY23 after achieving profitability and significant scale in FY22. The Chennai-based company witnessed a 7.2X surge in operating revenue, reaching Rs 15.31 crore during FY22. In the current fiscal year, it has further expanded its revenue to Rs 46.8 crore. Garuda Aerospace generates revenue from surveillance charges, operating services, and sales of drones and accessories.
Founded in 2015 by Agnishwar Jayaprakash, Garuda Aerospace specializes in drone-as-a-service (DaaS) solutions. The startup designs, manufactures, and customizes unmanned aerial vehicles (UAVs or drones) for various applications, including deliveries, disaster management, and agriculture. Offering 30 different types of drones and 50 types of services, the company boasts a client base of over 750, including prominent names like TATA, Godrej, Adani, Reliance, Swiggy, and Flipkart.
Alongside scaling its operations, Garuda Aerospace has maintained profitability. In FY23, the company reported profits of Rs 3.9 crore, a 7.4% increase from the previous year. Looking ahead, Garuda aims to achieve a revenue of Rs 400 crore in FY24, representing a 10X jump from the current fiscal year.
In February, Garuda secured the largest Series A funding round in the drone industry. The company is now valued at $250 million and has plans for further expansion. It intends to raise $50-70 million in a Series B round, targeting a valuation of $300-400 million. Garuda aspires to become the first drone unicorn in the industry by 2024.
Notably, the company has received pre-bookings for over 9,000 drones, holding the largest order book among Indian drone companies. It also has revenues worth more than Rs 300 crore waiting to be realized, with a healthy margin of 26% in the coming year. Recently, Garuda secured a significant order of 400 Agri Kisan Drones from Indian Farmers Fertilizer Cooperative Limited (IFFCO) and obtained dual DGCA certification for its Garuda Kisan Drone.
While Garuda Aerospace faces competition from players like Skyroot Aerospace, Bellatrix Aerospace, and ideaForge, it benefits from favorable policy support in the Indian drone market. However, the reliance on imports remains a significant risk for the industry, considering potential disruptions and restrictions on technology transfer. It will be interesting to observe how Indian drone sellers have mitigated such challenges and maintained their market position.
