More funding essential for defense startups to achieve liftoff

• ByStartupStory     |    January 2, 2024

In a State of the Economy Podcast episode, Captain Nikunj Parashar, the Founder and CEO of Sagar Defence Engineering Private Limited, engages in a discussion with businessline’s Dalip Singh. They explore the defense sector’s latest advancements, expectations from the 2024 budget, challenges encountered by startups, and the innovative journey of Sagar Defence, established in 2015, focusing on cutting-edge naval solutions.

Captain Parashar, a merchant marine and IIM Ahmedabad alumnus, sheds light on Sagar Defence’s initial hurdles and underscores the significance of the Make in India initiative. His company specializes in autonomous maritime technology, particularly platform-agnostic solutions for the Indian Navy. Notable achievements include developing India’s inaugural unmanned surface vehicle, gaining recognition from the armed forces.

The conversation delves into Sagar Defence’s recent triumph securing a contract under the IDEXX Dio’s Sprint Initiative, involving autonomous weaponised boat swarms. Captain highlights their platform’s core technology, emphasizing platform-agnostic hardware and embedded software, instrumental in radio control target boats and unmanned surface vehicles, all developed in India.

The podcast further explores Sagar Defence’s expansion across domains, spanning aviation and maritime, featuring projects like ship-based drones and underwater vehicles for mine countermeasures. Captain Parashar discusses their foray into Europe’s commercial sector, spotlighting drone technology applications like wind farm inspection.

Addressing concerns about funding for defense startups, Captain Parashar acknowledges positive initiatives like IDEXX but emphasizes the necessity for additional funds, possibly through alternative investment channels.

The dialogue wraps up with insights into the broader defense startup ecosystem, emphasizing the role of organizations like SIDM. Captain Parashar expresses expectations for increased funding and support in the forthcoming budget, stressing the importance of a robust semiconductor industry for India to become a self-reliant arms exporter. He underscores the need for collaboration between larger defense companies and startups to foster sector growth.

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