Airbound Raises $8.65M for Rocket-Like Delivery Drones | India

Airbound Secures $8.65 Million Seed Funding for Drone Delivery Innovation

Airbound, a pioneering drone technology company based in India, has successfully secured $8.65 million in seed funding. This investment round was spearheaded by Lachy Groom, a co-founder of Physical Intelligence, and marks a significant step forward for the startup as it initiates drone-delivery trials with a prominent private hospital.

Investment Details and Backers

The seed funding round saw participation from Humba Ventures and Airbound’s pre-existing investor, Lightspeed Venture Partners. Furthermore, key personnel from leading technology firms such as Tesla, SpaceX, and Anduril contributed to the funding.

Revolutionizing Drone Technology

Established in 2020 by Naman Pushp, currently 20 years old, Airbound is developing a novel aircraft design. Utilizing a tail-sitter configuration – enabling vertical takeoff and launch – and a carbon fiber frame, the company aims to drastically reduce delivery costs, potentially by up to 20 times compared to traditional methods.

Blended-Wing Body Design for Enhanced Efficiency

Unlike conventional quadcopter drones, Airbound’s aircraft features a blended-wing-body shape powered by two propellers. This design allows for both rocket-like takeoff and airplane-style flight, maximizing aerodynamic performance.

Targeting Ultra-Low-Cost Deliveries

Airbound’s founder and CEO, Pushp, stated the company is focused on achieving a delivery cost of just one cent. This ambitious goal is being pursued through a fundamental rethinking of energy utilization in logistics.

Cost Comparison with Existing Delivery Methods

Currently, electric two-wheelers are commonly used for deliveries under 3 kilograms in India. However, these vehicles weigh approximately 150 kilograms and consume energy at a rate of roughly ₹2 ($0.02) per kilometer. Airbound’s TRT drone, designed for small payloads, aims to reduce this cost to as little as 10 paise (around $0.001) per kilometer.

Weight Reduction and Energy Savings

By eliminating the need for a human driver and significantly reducing overall transport weight – by a factor of approximately 30 – Airbound anticipates a 20-fold decrease in energy consumption per kilometer. This makes the one-cent delivery target a realistic possibility.

Addressing Limitations in Current Drone Technology

Pushp emphasizes that existing drone technology has substantial room for improvement. He points out the inefficiency of carrying four kilograms of drone weight to deliver one kilogram of payload and criticizes the lack of focus on aerodynamic efficiency.

Aerodynamic Advantages of the New Design

The blended-wing design and rocket-like takeoff eliminate the need for extra propellers and complex moving parts, resulting in improved aerodynamic efficiency compared to standard quadcopters. By minimizing airflow disruption, the drone achieves a higher lift-to-drag ratio, reducing thrust requirements and enhancing energy efficiency.

Drone Specifications and Future Development

The initial Airbound drone prototype weighs 3.3 pounds and can carry a payload of up to 2.2 pounds. The company is also developing a second-generation model, projected to support a 6.6-pound payload while weighing only 2.6 pounds.

Production Timeline

A functional prototype of the second-generation drone is expected to be operational by mid-2025, with full-scale production anticipated to commence in the first quarter of 2027.

The Importance of Efficiency and Weight

Pushp believes that success in autonomous logistics hinges on efficiency and weight. A lighter, more efficient aircraft will ultimately dominate the market.

Company Origins and Early Funding

Airbound’s journey began during the 2020 COVID-19 lockdown, inspired by the work of Zipline. An early prototype, constructed from basic materials, earned a $500 grant at a hackathon. Subsequent funding rounds included a $1,000 grant from the 1517 Fund, $25,000 from gradCapital, and $12,000 from Emergent Ventures.

Securing Investment from Lightspeed

Pushp received a term sheet from Lightspeed Venture Partners at the age of 17, but formally signed the agreement after his 18th birthday.

Battery Technology for Longevity

Airbound utilizes lithium-ion batteries, chosen for their superior cycle life (500-800 cycles) compared to the more commonly used lithium-polymer batteries (100-200 cycles). This decision is driven by the significant cost associated with battery replacements.

Manufacturing Costs and Delivery Targets

Currently, each Airbound drone costs $2,000 to manufacture, with a delivery cost of approximately ₹24 ($0.27). The company aims to reduce the delivery cost to below ₹5 (roughly $0.05) by the end of 2026.

Scaling for Mass Deliveries

Airbound projects to achieve a delivery rate of one million packages per day by mid-2027. To support this growth, the company plans to increase its manufacturing capacity to over 100 drones per day, a substantial increase from its current production rate of one drone per day at its Bengaluru facility.

Pilot Program with Narayana Health

Airbound has initiated a pilot program with Narayana Health in Bengaluru, focusing on the delivery of medical logistics for three months. The program aims to complete 10 deliveries daily, transporting medical tests, blood samples, and other essential supplies.

Expanding into New Sectors

Beyond healthcare, Airbound is targeting other sectors, including quick commerce, food delivery, and various last-mile delivery applications.

Future Expansion Plans

Following successful scaling in India, Airbound plans to expand internationally, with a target entry into the U.S. market within three years. The company is also actively engaging with regulatory bodies, including India’s Directorate General of Civil Aviation, to secure flight approvals.

Total Funding and Team Size

To date, Airbound has raised over $10 million in total funding and employs a team of 50 individuals.

Utilizing Funds for Growth

The latest funding round will be used to scale manufacturing capabilities and expand operations. The pilot program will also serve to refine the service and reduce costs, preparing the company for broader market adoption in 2026.