Deeptech startup D-Propulse Aerospace, which is building propulsion systems for defence and aerospace use, has raised INR 25 Cr (about $2.7 Mn) from IAN Alpha Fund.
The startup will use the fresh capital to hire engineers, expand computing and simulation capabilities, and set up limited testing infrastructure. It is also working on flight-ready versions of its propulsion systems and has begun early discussions with the Indian military.
IAN Alpha Fund said it invested in D-Propulse due to the high cost and complexity of propulsion systems in aerospace, which often limit scale. The fund believes simpler and more efficient propulsion technology could help India build high-speed defence platforms at lower costs.
Founded in July last year by Saurav Jha and Ramanujachari V, D-Propulse is working on rotating detonation engine (RDE) technology, a type of propulsion system designed for high-speed platforms such as missiles and drones.
Unlike conventional jet engines, RDE-based systems have no moving parts, making them simpler to build and easier to scale.
The startup claims its technology can deliver higher efficiency than existing propulsion systems, while reducing overall system size and cost. This could allow defence platforms to be produced in larger numbers at lower costs.
Notably, the founding team also includes former DRDO scientists and researchers from IIT Madras. Former DRDO chairman and NITI Aayog member Dr VK Saraswat is the company’s chief mentor.
The funding comes at a time when the deeptech sector is seeing a lot of interest in India, with the total funding in the segment surging 94% to $157 Mn in 2025 from $81 Mn in 2024.
This has also led to the emergence of a number of startups working in the aerospace sector. For instance, Zomato founder Deepinder Goyal’s LAT Aerospace has raised more than $20 Mn in funding till now. Most recently, it tested ultra-short take-off and landing (uSTOL) earlier this month.
Meanwhile, other startups like Axirium Aerospace and Arctus Aerospace have raised $3.5 Mn and $2.6 Mn, respectively.
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