Garuda Aerospace raises $10M pre-IPO at $320M valuation

Garuda Aerospace has raised $10 million in pre-IPO funding at a $320 million valuation, according to reports. The drone startup filed its draft IPO papers confidentially earlier this year and received regulatory approval to proceed in August. It now plans to go public in the first quarter of 2027.

The round follows a pattern of late-stage Indian startups shoring up capital before listing, though Garuda’s valuation is modest compared to recent pre-IPO raises. When we covered Nscale’s $3.36 billion pre-IPO round last month, it set a record for AI infrastructure startups, while Modal Labs’ $15 billion valuation talks reflect investor enthusiasm for AI-adjacent plays. Garuda’s focus on agriculture and defense drones positions it in a niche with fewer direct comparables, but its path to profitability will be a key test for public investors.

The timing of the IPO filing suggests confidence in market conditions, though Indian startups have faced mixed outcomes post-listing. Another startup, which pre-filed its IPO papers recently, is also seeking pre-IPO funding—a sign of caution among founders navigating volatile public markets. Garuda’s ability to convert its drone technology into scalable revenue will determine whether its valuation holds up in the public domain.

What to watch: whether Garuda secures additional institutional backing before its IPO roadshow, and how its financials compare to peers that have gone public in the sector.

Sources: economictimes.indiatimes.com