FundraiseSep 21, 2026, 04:59 UTC

360 ONE Asset raises $160M fund for India's defence startups

What's the deal? 360 ONE Asset has raised a US$203.7M venture capital fund to back defence and aerospace companies in India. Its Defence and Space Fund targets businesses from early-stage through pre-IPO rounds.

What's it backing? The fund's interests span defence electronics, components, earth observation, electronic warfare, missile defence, counter-drone systems, artificial intelligence for defence, and dual-use applications. It is also eyeing companies building microgas turbines and jet engines.

Where's the money going? Of four investments made so far, Digantara and Sisir Radar both serve the earth observation segment.

Why now? New Delhi has pushed the sector through programmes including iDEX, ADITI, and Make in India, and earmarked 25% of the defence research and development budget for the private sector. The moves aim to widen private participation and cut import dependence.

What's the endgame? The push is drawing fresh founders out of government research bodies. Sisir Radar was founded by a former Indian Space Research Organisation (Isro) official, while Skyroot Aerospace's founders also came from Isro. ShareChat founders Farid Ahsan and Bhanu Pratap Singh have entered deeptech through robotics firm General Autonomy.

Abhishek Nag, head of venture capital and co-head of the fund, credited state planning for the momentum. "The government has done a good job of publishing long-term technology roadmaps [and] specific projects that require innovation and IP," he said.

The signal: Government roadmaps and a carved-out private R&D budget are pulling institutional capital into Indian defence tech. As dedicated funds and ex-Isro founders converge, the sector is becoming a distinct venture category rather than a state preserve.