Indian drone startup Raphe Mphibr has raised $100 million in all Equity Series B rounds led by General Catalyst, as Startup aims to boost R&D and local production capacity and increase demand for drones and border surveillance on the battlefield.
Drones are increasingly ubiquitous in global military operations. In recent ongoing conflicts, countries have turned into drones due to rapid penetration and shocking strikes. The recent Indian and Pakistan wars are a prime example of both troops deploying drones on a large scale despite having advanced fighter jets and missile systems. The conflict has tripled New Delhi’s drone spending to $470 million over the next 12-14 months, according to the Federation of India, an association representing more than 550 companies.
While China remains the dominant force in global drone manufacturing, Raphe Mphibr aims to enhance the drone capabilities of India’s indigenous peoples.
The Noida-based startup, co-founded in 2017 by brothers Vikash Mishra (Chairman) and Vivek Mishra (CEO), currently offers nine different drones with payloads ranging from 4.4 to 441 pounds, with an average distance of 12-124 miles. These drones include a herd of MR10 operating drones, an MR20 for high-altitude logistics supply, an X8 compact platform for marine patrols, and a lightweight, human-conscious drones from Bharat for situational awareness at sea, and rapid surveillance over complex terrain.
The startup has over 10 customers. These are all Indian government agencies including the Indian Army, Navy and Air Force, as well as armed police such as border guards, Central Reserve Police and India-Tibetan Border Police.
The Mishra brothers conceptualized Raphe Mphibr in 2016 while Vikas was studying at the Massachusetts Institute of Technology, and Vivek was at Georgia Institute of Technology. For the first three to four years, the co-founders focused on understanding the operational needs of the Defence Force, along with other requirements such as environmental and topographical considerations. They then began building multicopters to meet the needs of the Indian military, gradually expanding to fixed wing and vertical takeoff and landing (VTOL) aircraft.
“Along the way, I realized that the need is new and that the region is a niche, so it focuses on both research and manufacturing. [already existed]Vivek said in an interview.
The startup began its journey in 2017 at a 2,000-square-foot research facility, but expanded to a 100,000-square-foot research and manufacturing facility. This has now been expanded to a 650,000 square foot facility as a result of fresh capital injections, and it has also been seen that existing investors’ participation considers investment.
“From day one, we have been opposed to technology transfer,” Vivek told TechCrunch.
Raphe Mphibr produces domestically the flight controllers, batteries, and all components and materials needed to build drone structures, including diving metals, thermoplastics, carbon fiber composites, and even wire harnesses. The facility also develops its own autopilot and inertial navigation system. However, the startup imports radar and high-end cameras and plans to manufacture them in-house within 18 months.
Vivek told TechCrunch that the startup avoided several supply chain challenges as it does not rely on China for any of the components it uses.
“The biggest challenge was setting up facilities and conducting research,” he said. “To do research in India is slightly more expensive than in the US, so getting a machine is a challenge, and commissioning is a challenge, because the infrastructure is set up so well. And it’s hard to find people who can operate these, so operating them is a challenge.”
Raphe Mphibr has tackled some of these hurdles by focusing on training and early development of employees, he added.
Startups also use AI with drones for object detection in surveillance scenarios, automatically switch frequency bands to adapt to electronic warfare, and employ operational UAV Swarm intelligence to make distributed decisions using AI.
Over the past few months, Raphe Mphibr has partnered with Hensold, Germany and Safran, France, to work with France’s Dassault Systèmes on the development of new sensors and software simulation requirements.
Raphe Mphibr is planning to expand beyond India and enter new markets. To this end, it has already participated in defence air shows, including those of Dubai and Paris.
Vivek told TechCrunch that the startup already has several export licenses and is asking for more, but refuses to share details.
“We’re having very high level of consultation with several government agencies around the world, and we’ll soon be able to start delivering there this year, as well,” he said.
In the last 12 months, Raphe Mphibr has sold over 300 drones and has experienced revenue growth rates of up to four times over the past four years, Vivek said without disclosing certain numbers. He also said the startup has been profitable over the past four years and is projected to be made public within the next two to five years.
Raphe Mphibr has approximately 600 employees, 150 dedicated to research and production with over 250 people. To this day, the startup has set a total of $145 million in equity funds.
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