Raphe Mphibr: Indian Drone Startup Secures $100M Funding

Indian Drone Startup Secures $100 Million in Funding

Raphe mPhibr, an Indian drone technology company, has successfully completed a $100 million Series B funding round. The investment was led by General Catalyst and will be utilized to enhance the company’s research and development efforts, as well as to expand its domestic manufacturing capabilities.

Growing Demand for Military Drones

The use of drones in military operations is rapidly increasing globally. Recent conflicts have demonstrated the effectiveness of drones for swift deployment and impactful operations. For example, the India-Pakistan conflict saw significant drone usage by both sides, even alongside advanced aircraft and missile systems.

This surge in demand has prompted India to significantly increase its drone expenditure. The Drone Federation of India reports an anticipated tripling of spending, reaching $470 million over the coming 12 to 14 months.

Strengthening Indigenous Drone Capabilities

While China currently leads in global drone manufacturing, Raphe mPhibr is focused on bolstering India’s self-reliance in drone technology. The company aims to provide domestically produced solutions for critical defense and security needs.

Raphe mPhibr’s Drone Portfolio

Founded in 2017 by Vikash Mishra and Vivek Mishra, Raphe mPhibr currently offers a range of nine distinct drone models.

• Payload Capacity: These drones can carry payloads ranging from 4.4 pounds to 441 pounds.
• Operational Range: They operate effectively over distances between 12 and 124 miles.

Key models include the mR10 operational drone swarm, the mR20 for high-altitude logistics, the X8 for maritime surveillance, and the Bharat lightweight drone for surveillance in challenging environments.

Government Partnerships

Raphe mPhibr’s customer base consists entirely of Indian government agencies. This includes the Indian Army, Navy, and Air Force, alongside various armed police forces like the Border Security Force and the Central Reserve Police Force.

From Research to Manufacturing

The Mishra brothers began developing the concept for Raphe mPhibr in 2016, while pursuing studies at MIT and Georgia Tech. Initially, their focus was on thoroughly understanding the operational requirements of the Indian defense forces.

They transitioned from building multicopters to developing fixed-wing and vertical takeoff and landing (VTOL) aircraft, continually expanding their capabilities to meet evolving needs.

Focus on In-House Development

“We prioritized both research and manufacturing from the outset,” explained Vivek Mishra. “This approach ensured we weren’t limited by existing technologies and allowed us to innovate freely.”

Expansion and Infrastructure

The company has significantly expanded its facilities. Starting with a 2,000-square-foot research space in 2017, it now operates a 650,000-square-foot combined research and manufacturing facility, thanks to the recent funding round. Existing investor Think Investments also participated in this funding.

Commitment to Domestic Production

“We have consistently opposed relying on technology transfer,” Vivek Mishra stated. Raphe mPhibr is dedicated to building its technology internally.

Component Manufacturing

Raphe mPhibr currently manufactures key drone components in-house, including flight controllers, batteries, and structural elements. These elements are created using materials like subtractive metals, thermoplastics, and carbon fiber composites.

The company also develops its own autopilots and inertial navigation systems. However, radars and high-end cameras are currently imported, with plans to begin in-house production within the next 18 months.

Supply Chain Independence

Vivek Mishra emphasized that the company does not depend on Chinese suppliers for any of its components, mitigating potential supply chain disruptions.

Overcoming Manufacturing Challenges

Establishing the manufacturing facility and conducting research presented significant challenges. “Research in India can be more costly than in the U.S. due to infrastructure differences,” Mishra noted. “Acquiring, installing, and operating machinery also poses difficulties, particularly finding skilled personnel.”

The company has addressed these issues by investing in employee training and development from its inception.

Leveraging Artificial Intelligence

Raphe mPhibr integrates AI into its drones for various applications, including object detection during surveillance, adaptive frequency switching to counter electronic warfare, and decentralized decision-making within operational drone swarms.

International Collaborations

In recent months, Raphe mPhibr has formed partnerships with Germany’s Hensoldt and France’s Safran to collaborate on sensor development. They have also partnered with France’s Dassault Systèmes for software simulation.

Global Expansion Plans

Raphe mPhibr intends to expand its market reach beyond India. The company has already participated in defense air shows in Dubai and Paris.

The startup has secured some export licenses and is actively pursuing additional ones. “We are currently in advanced discussions with several government agencies worldwide and anticipate commencing deliveries this year,” Vivek Mishra revealed.

Financial Performance and Future Outlook

Over the past year, Raphe mPhibr has sold over 300 drones and experienced a fourfold increase in revenue over the last four years. The company has been profitable for the past four years and anticipates going public within the next two to five years.

Company Size and Funding

Raphe mPhibr currently employs around 600 people, with 150 dedicated to research and over 250 to production. To date, the company has raised a total of $145 million in equity funding.