First Indian startups selected for Indo-US defence programme: Investors

Seven Indian private startups have been selected for a groundbreaking India-US space and defense partnership program, which could open up a profitable and strategic market for Indian companies, an investor who co-founded the initiative informed Reuters on Friday.

The firms consist of space imaging organization KaleidEO, rocket manufacturers EtherealX, and AI-focused enterprise Shyam VNL. They are set to engage in a program focused on defense and dual-use technology, seeking opportunities to collaborate with the US Defense Innovation Unit, the Department of Defense, and additional government entities on satellite observation and new developments in space and defense technologies.

Indian investor Indusbridge Ventures and US-based FedTech, which launched the programme in September 2024, have chosen seven Indian companies, and discussions are ongoing about specific projects. “This programme provides crucial resources, mentorship, and key connections with industry leaders in the US, and we are eager to collaborate with FedTech on this initiative to enhance private-sector partnerships between the two nations in strategic areas – defence and dual-use technology,” stated Rahul Devjani, managing partner at Indusbridge Ventures.

The startups will gain entry to the largest global defence and space market and may collaborate with US defence industry giants such as Northrop Grumman, Lockheed Martin, and RTX, according to two sources from the startups. They chose not to be named because of the delicate nature of the issue. This might provide them with an advantage over rivals as they vie for US contracts in their sectors valued at approximately $1.5 billion each year, according to one of the sources.

The government agencies in the US did not promptly reply to emails requesting comments. The specifics and progress of the program have not been disclosed previously. Lockheed and Northrop chose not to comment, whereas RTX, previously known as Raytheon, did not promptly reply to an email requesting feedback. Accessing the US defense and space market, the biggest in the world, could yield annual revenues ranging from $500 million to $1 billion for Indian firms, stated the second source.

This month, Indian National Security Advisor Ajit Doval met with his US counterpart Jake Sullivan in New Delhi to talk about collaboration in space technology and the “strengthening partnership between the US Defense Innovation Unit and India’s Innovations for Defense Excellence to speed up the use of advanced commercial technologies for military applications,” among other subjects.