Bengaluru-based Unimech Aerospace has raised about $30 million (Rs 250 crore) in a fresh funding round from investors including Steadview Capital Mauritius Limited, ValueQuest Scale Fund, and Evolvence India Fund IV Ltd, it announced on Wednesday.
With the latest infusion, IPO-bound Unimech Aerospace has attained a post-money valuation of Rs 3,250 crore ($388 million), per a company statement.
The funds will bolster Unimech’s expansion efforts and strategic objectives, the statement added.
“From our humble start in 2016 as a bootstrapped team of five, we’ve grown to over Rs 200 crore in revenue with 380 employees as of FY 2023-24, all without external funding. This investment will enable us to pursue both organic and inorganic growth, enhancing our Build to Print and Build to Spec solutions,” said Unimech chairman and managing director Anil Puthan.
“Beyond financial support, this investment brings invaluable intellectual capital. By leveraging our investors’ expertise in private and public equity, we aim to strengthen our strategies and operations,” Puthan added.
Unimech Aerospace is engaged in the manufacturing of high-precision tooling for aero-engines and airframes, along with components, assemblies, and electro-mechanical turnkey systems for the aerospace, defence, energy, and semiconductor industries.
Anand Rathi Advisors provided advisory services for the transaction.
India’s space economy, traditionally dominated by government agencies, has been seeing significant participation of private players in the last few years, with the number of spacetech startups going up from just 11 in 2019 to over 100 by the end of 2021, per the Economic Survey 2022. Investors’ interest in the sector has also been on the rise.
At least eleven startups operating within the aerospace industry collectively raised funding worth $60.8 million in the Jan-June period of 2024. These include Dhaksha ($11 million), Dhruva Space ($15 million), Jjg Aero ($12 million), PierSight ($6 million), and Skye Air Mobility (4 million), according to proprietary data compiled by DealStreetAsia.
The government’s plan to set up a Rs 1,000-crore venture capital (VC) fund for the space sector will further give a push to new entrepreneurs looking to tap the enormous growth potential projected for the sector.