Raghu Vamsi Aerospace bags $40M to expand manufacturing, defence tech

Hyderabad-based Raghu Vamsi Aerospace Group, a precision manufacturing and deeptech company serving the aerospace, defence and energy sectors, has raised $40 million (~ Rs 400 crore), in a Series B funding round led by growth equity investor Norwest and Skegen Asset Management.

The round also drew participation from defence-focused IndusBridge Ventures, GJNX Ventures, and investor Ashish Kacholia.

The capital will be used to expand its manufacturing footprint across India, the United Kingdom, and the United States, accelerate the development of its integrated Aerospace and Defence Manufacturing Campus at Hardware Park in Hyderabad, and strengthen its Mission Systems, Propulsion and Autonomous Systems businesses, the company said in a LinkedIn post.

Founded as a precision engineering business and built over more than two decades, Raghu Vamsi Aerospace Group has evolved into an integrated manufacturing platform with facilities across three countries. It designs, manufactures, tests and assembles high-precision components and systems used in aerospace, defence and energy applications.

Its capabilities span propulsion technologies, robotics, electronics and autonomous platforms, and its customer base includes leading global original equipment manufacturers (OEMs), which build finished aircraft and defence equipment.

The company said the investment validates the integrated aerospace and defence enterprise it has built over the past two decades. It also said the next phase of growth will focus on combining engineering expertise, advanced manufacturing, and technology leadership into a globally competitive platform.

The funding comes at a time when India’s aerospace and defence manufacturing sector is gathering momentum, driven by government efforts to promote domestic production under the Atmanirbhar Bharat initiative. Proposed reforms under the Defence Acquisition Procedure 2026 seek to increase indigenous content, simplify procurement, and encourage private sector participation. Meanwhile, continued investment in defence corridors and innovation programmes is expanding opportunities for companies developing advanced technologies.

The ecosystem has witnessed a series of funding and expansion announcements. Earlier this year, Bengaluru-based aerospace components manufacturer JJG Aero raised $30 million from Norwest to expand manufacturing capacity, while Skyroot Aerospace most recently achieved India’s first privately developed orbital rocket launch, underscoring the growing maturity of the country's private aerospace sector.