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Hyderabad-based aerospace and defence manufacturing company Raghu Vamsi Aerospace Group (RVAG) has raised $40 Mn (about ₹400 Cr) in a funding round led by Norwest and Skegen Asset Management. 

The round also saw participation from Indus Bridge Ventures, GJNX Ventures, and investor Ashish Kacholia.

The fresh capital will be used to expand the company’s manufacturing capacity across its facilities in India, the UK and the US, speed up the development of its integrated manufacturing campus at Hardware Park near Hyderabad International Airport, and strengthen its mission systems and deeptech businesses.

Founded more than two decades ago, RVAG manufactures precision aerospace components and sub-assemblies for global companies such as GE Aerospace, Collins Aerospace, Honeywell, and Safran. It also supplies components to energy companies including Baker Hughes, Halliburton, SLB, and GE. 

The company said it currently has an order book worth more than ₹2,500 Cr.

Beyond contract manufacturing, RVAG is developing products such as micro turbojet engines, aircraft hydraulic pumps, and missile subsystems through its mission systems business. It is also building drone and unmanned ground vehicle technologies under its ARROBOT platform for defence applications. 

The company operates more than 10 manufacturing facilities across India, the UK and the US, employs over 1,200 people, and collaborates with institutions including the IITs, IIITs, ARCI, ADA and DRDO on aerospace and defence technologies. 

The funding comes amid growing investor interest in India’s advanced hardware ecosystem.  According to Inc42’s Indian Startup Funding Report, H1 2026, advanced hardware and technology startups, including aerospace, defence, semiconductor and robotics companies, raised $365 Mn across 66 deals in the first six months of 2026, making it the second-most active sector by deal count after ecommerce. 

While deal activity in the sector surged 53% YoY, funding grew 18%, signalling sustained investor appetite despite a broader slowdown in startup funding. Investors are increasingly backing startups with differentiated intellectual property and advanced manufacturing capabilities, as capital shifts towards frontier technologies. 

Government initiatives have further strengthened investor confidence. According to the report, 61% of institutional investors said the India Semiconductor Mission (ISM 2.0) had influenced their investment thesis for deeptech and hardware startups.

 The sector has also witnessed strong momentum over the past year. Precision engineering company Aequsand automotive electronics manufacturer SEDEMAC Mechatronics listed on the public markets in the past few months, while Hyderabad-based spacetech startup Skyroot Aerospace raised $60 Mn at a unicorn valuation in H1 2026 before becoming the first private Indian company to successfully place a rocket into orbit with the launch of Vikram-1. 

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