CoreEL Technologies raises $30M in Series B funding

CoreEL Technologies, an aerospace and defence electronics company, on Tuesday said it raised $30 million in a Series B funding round as private capital continues to flow into India’s strategic manufacturing ecosystem.

The Bengaluru-headquartered firm's round was led by ValueQuest Scale Fund, with participation from existing investor 360 ONE Asset.

The funding comes at a time when India’s defence sector is undergoing a structural shift. Government policy has increasingly favoured indigenisation, long-term procurement visibility, and private sector participation, creating opportunities for companies that can deliver complex, mission-critical electronics.

CoreEL’s focus on system and sub-system level products positions it squarely within this trend.

Founded in 1999, CoreEL Technologies has built capabilities across radar, electronic warfare, avionics, and military communications. Its customer base includes the Defence Research and Development Organisation (DRDO) and defence public sector undertakings, placing the company within India’s tightly regulated strategic supply chain.

The company will use the capital to scale manufacturing, deepen research and development, and support participation in large domestic and overseas programmes.

These priorities reflect the reality of the aerospace and defence market, where growth is less about rapid volume expansion and more about execution reliability, certification, and long-term programme wins.

The round follows CoreEL’s acquisition of the aerospace and defence systems division of Lekha Wireless, a move that expanded its military communications portfolio.

The integration of indigenous intellectual property and specialised engineering talent strengthens CoreEL’s presence in secure communications, a segment seeing rising demand as modern platforms rely more heavily on network-centric capabilities.

Pushkar Jauhari, Managing Director and Head of Private Equity at Value Quest, highlighted CoreEL’s strong positioning across the aerospace and defence domain with its proven technological capabilities and its focus on indigenous development.

“Our investment in CoreEL Technologies reflects our strong conviction in CoreEL’s proven execution capability, engineering and leadership depth and its ability to scale up and contribute meaningfully to indigenisation initiatives,” Jauhari added.

However, challenges remain. Defence electronics is capital-intensive, exposed to procurement delays and dependent on a limited number of large customers. Export ambitions, while promising, bring additional regulatory and geopolitical complexity. Companies like CoreEL will need to balance growth with financial discipline while continuing to invest heavily in engineering talent.

The funding round also highlights a broader maturation of India’s private defence ecosystem. Rather than startups focused on niche components, investors are now backing firms capable of delivering integrated systems over decades-long programme lifecycles.