Nagpur-based drone technology startup ZeroDrag has raised Rs 6.5 crore in a seed funding round led by Transition VC. The funding comes as India’s drone industry continues to grow rapidly, especially in defence and industrial sectors.
This is the company’s second major funding round. Earlier, in September 2023, ZeroDrag had raised Rs 1.2 crore in a pre-seed round from Enrission India Capital and several angel investors.
The startup now plans to use the fresh funds to improve research and development, increase manufacturing capacity, and strengthen product testing and quality systems.
Building Core Technology for Drones
ZeroDrag was founded in 2022 by Shantanu Bhede and Amit R. Nimje. The company works from the Research and Innovation Park at IIT Delhi and is supported by IIT Delhi’s Foundation for Innovation and Technology Transfer (FITT). It was also pre-incubated at IIM Bangalore’s NSRCEL.
Instead of making complete drones, ZeroDrag focuses on building the important electronic systems that drones need to operate. The company develops products like flight controllers, autopilots, GPS modules, motor controllers, telemetry systems, and payload integration systems.
The startup’s main goal is to reduce India’s dependence on Chinese drone components. Many drone companies across the world still rely heavily on Chinese hardware. ZeroDrag wants to become a strong alternative by building high-quality drone electronics in India.
The company has already started exporting some of its products to the US and Europe, where manufacturers are looking for suppliers outside China.
Funding Will Help Expand Manufacturing
ZeroDrag said the new investment will mainly help improve its R&D capabilities. The company wants to develop products faster so it can compete with global drone hardware makers.
It also plans to increase production and build a stronger supply chain to reduce dependence on limited vendors. Along with this, the startup will invest in better testing and quality systems.
Over the next 12 to 24 months, ZeroDrag also wants to develop advanced UAV hardware for heavy-lift drones and future electric vertical take-off and landing (eVTOL) aircraft.
At present, the company manufactures around 500 to 1,000 units every month. However, demand has been higher than supply, and the company has reportedly had to refuse some customer orders because of limited production capacity.
ZeroDrag claims that by manufacturing at scale and using standardised components, it can offer competitive pricing even against Chinese products.
Key Products and Technology
One of ZeroDrag’s main products is the ZERODRAG WARP F7 Flight Controller. It is designed for high-performance drones and comes with advanced features for better flight control and stability.
The flight controller uses the STM32F722 processor and supports firmware platforms like Betaflight and iNav. It also includes GPS support, autonomous mission features, USB Type-C connectivity, multiple motor outputs, and onboard data logging.
The company also makes RTK GNSS systems, low-latency video transmission systems with ranges up to 12 km, and handheld ground control stations.
For enterprise customers, ZeroDrag provides customised and white-label solutions. The company also offers a 12-month warranty on its products.
Defence Collaboration Brings Attention
ZeroDrag recently worked on the FPV Kamikaze Drone project in partnership with the Fleur-De-Lis Brigade and TBRL Chandigarh. The project is considered an important step for India’s defence drone technology and modern warfare systems.
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The startup also showcased its products at Bharat Drone Manthan 2.0, an event focused on India’s growing drone ecosystem. With drones being used more in defence, agriculture, logistics, surveillance, and industrial work, the demand for reliable drone electronics is increasing quickly.
Financials and Competition
According to startup data platform Tracxn, ZeroDrag reported annual revenue of Rs 27.6 lakh for the financial year ending March 2025. The company’s post-money valuation was around Rs 2.63 crore in March 2024.
The founders currently own more than 75 percent of the company. Other investors include Transition VC, NIKKEN RESORT, OKIKEN, Pilani Innovation Entrepreneurship Development, Spring Star Capital, Startup India, and MeitY.
ZeroDrag competes with several Indian and global drone hardware companies such as Holybro, SpeedyBee, HGLRC, Caddx, uAvionix, Sagetech, and ARK Electronics.
As India focuses more on local manufacturing and reducing imports in defence technology, startups like ZeroDrag are becoming important for the country’s drone industry. With fresh funding and growing global interest, the company now aims to become a strong global supplier of drone avionics systems.