In a bold move to accelerate India’s journey towards indigenous defence innovation, Titan Capital, one of the country’s most active seed-stage venture capital firms, has announced the launch of a specialised investment vertical dedicated to defence technology startups. This initiative aims to fuel innovation in strategic sectors like aerospace, cybersecurity, advanced hardware, and manufacturing, positioning India as a global leader in defence technology.
Strengthening India’s Defence Ecosystem Through Private Capital
While India has made remarkable progress in digital infrastructure, semiconductors, and space technology, the defence sector continues to rely heavily on public research and imports. With growing geopolitical tensions and rapid technological advances in AI, drone warfare, and satellite systems, Titan Capital believes that private investment is crucial to catalyse the next wave of indigenous military innovation.
Kunal Bahl, Co-founder of Titan Capital and Snapdeal, highlighted the urgency:
“We are at a historic inflection point where national security, deep-tech innovation, and startup agility are converging. India cannot achieve true self-reliance in defence by relying on imports or public funding alone. We need to back our brightest minds—engineers, researchers, and builders—to create sovereign, dual-use technologies that can shape not just India’s future, but the future of global defence.”
Focus Areas: Advanced Hardware, Aerospace, Cybersecurity, and Manufacturing
The new vertical will target startups innovating at the intersection of critical defence technologies, including:
Advanced Hardware: Cutting-edge components and systems for military applications.
Aerospace: Technologies related to drones, satellites, and aerospace manufacturing.
Cybersecurity: Solutions to protect defence infrastructure and digital assets.
Manufacturing: Next-generation manufacturing techniques for defence-grade products.
This focused approach aims not only to enhance national security but also to foster deep-tech entrepreneurship, generate high-value employment, and enable India to become a net exporter of strategic technologies.
Collaborating with Veterans and Domain Experts
Understanding the complexity and strategic nature of defence technology, Titan Capital plans to collaborate closely with veterans from the armed forces, scientists, and experienced technologists. These partnerships will provide critical domain expertise and strategic insight to evaluate and guide investments effectively.
Global Trends and India’s Defence Budget Boost
Globally, venture capital is increasingly focusing on defence tech. For example, U.S.-based Anduril Industries recently raised $1.5 billion for AI-enabled combat systems, while Europe’s Helsing secured €450 million to develop defence AI technologies. India, too, is ramping up efforts with a defence budget of Rs 6.81 lakh crore for FY 2025–26 and government initiatives like iDEX and the Technology Development Fund (TDF) that support homegrown defence innovations.
Titan Capital’s Proven Track Record and Vision for Defence Tech
Titan Capital has already backed over 250 startups, including household names like Ola, Razorpay, Urban Company, and OfBusiness. With this new defence tech vertical, the firm aims to extend its founder-first philosophy into a sector of national importance.
Kunal Bahl summed up the vision:
“At Titan, we’ve always been a founder-first firm. This vertical extends that ethos into a sector that has national consequence. We want to empower bold founders who are building the future of Indian defence technology—from next-generation hardware to aerospace, cyber, and AI.”
Why This Matters for Bharat’s Future
India’s defence tech startup ecosystem is rapidly evolving, with over 1,000 startups innovating in drones, surveillance, robotics, and more. However, challenges such as unpredictable procurement cycles and the dominance of public sector units persist. Titan Capital’s entry as a strategic investor brings fresh momentum, bridging the gap between innovation and market readiness.
By catalysing private capital in defence technology, Titan Capital is helping Bharat move closer to self-reliance, creating high-skilled jobs, and building technologies that protect the nation and strengthen India’s position on the global stage.