Bengaluru, Aug 29 India’s military tech sector is witnessing record-breaking growth, with annual funding rising 61 times over the past decade, a new report said on Friday.
According to the ‘India Military Tech Report 2025’ released by market intelligence platform Tracxn, startups in this space have raised $192.4 million so far in 2025 -- making it the most funded year to date.
The sector has raised a total of $611 million across 211 funding rounds since 2016, the report added.
The number of deals has also grown rapidly, from just three in 2016 to 36 in 2023, with 20 already recorded this year.
Commenting on the report, Neha Singh, Co-Founder of Tracxn, said India’s defence technology ecosystem is entering a “defining phase,” driven by innovation, policy support and investor participation.
“India’s Military Tech sector is entering a defining phase, shaped by innovation, policy support, and growing investor participation,” Singh added.
She highlighted how drones, AI, robotics and cybersecurity solutions are moving from experimental projects to mission-critical applications.
Delhi NCR and Bengaluru have emerged as the leading hubs, with companies in these regions raising $194.6 million and $166.1 million respectively.
India is now home to more than 150 active military tech startups, with 76 of them securing equity funding so far.
Early-stage companies continue to dominate the funding landscape. Raphe mPhibr’s $100 million Series-B round was the largest deal of 2025, followed by Newspace Research’s $33 million and Sagar Defence Engineering’s $25.4 million.
Late-stage rounds also saw traction, with Big Bang Boom Solutions raising $29.9 million in Series-C and Tonbo Imaging securing $20.4 million in Series-D, the report stated.
Government initiatives like Atmanirbhar Bharat, iDEX and Defence Industrial Corridors are also accelerating the growth of the sector.
The military tech space has also seen consolidation and market maturity. Four companies have gone public and around 110 venture capital firms have invested in the sector till date.
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