Exclusive-First Indian startups picked for Indo-US defence programme, investor says

By Nivedita Bhattacharjee

BENGALURU (Reuters) -Seven Indian privately-held startups have been chosen for a first-of-its-kind India-U.S. space and defence collaboration programme, potentially unlocking a lucrative and strategic market for Indian firms, an investor who co-launched the project told Reuters on Friday.

The companies include space imaging company KaleidEO, rocket makers EtherealX and AI-driven company Shyam VNL. They will participate in a programme for defence and dual-use technology and explore opportunities to work with the U.S. Defense Innovation Unit, the Department of Defense and other government agencies on satellite observation and emerging space and defence technologies.

Indian investor Indusbridge Ventures and U.S.-based FedTech, which established the programme in September 2024, selected seven Indian companies and talks are underway about specific projects.

"This programme offers valuable resources, mentorship, and essential connections with industry leaders in the U.S. and we look forward to partnering with FedTech on this initiative to accelerate private-sector partnership between the two countries in strategic sectors – defence and dual-use technology," said Rahul Devjani, the managing partner at Indusbridge Ventures.

The startups will get access to the world's biggest defence and space market and potentially work with U.S. defence industry leaders like Northrop Grumman, Lockheed Martin and RTX, two sources from the startups said. They declined to be identified owing to the sensitivity of the matter.

That could give them an edge against the competition as they compete for U.S. business in their niches worth about $1.5 billion annually, one of the sources said.

The U.S. government bodies did not immediately respond to emails seeking comment. The development and details of the programme have not been made public before.

Lockheed and Northrop declined to comment, while RTX, formerly known as Raytheon, did not immediately respond to an email seeking comment.

Access to the U.S. defence and space market, the largest globally, could generate annual revenues between $500 million and $1 billion for the Indian companies, the second source said.

Indian National Security Advisor Ajit Doval this month met with his U.S. counterpart Jake Sullivan in New Delhi to discuss space technology collaboration and the "deepening cooperation between the U.S. Defense Innovation Unit and India's Innovations for Defense Excellence to accelerate the adoption of cutting-edge commercial technologies for military solutions," among other topics.

(Reporting by Nivedita Bhattacharjee in Bengaluru; Additional reporting by Mike Stone in Washington; Editing by Jamie Freed and Neil Fullick)

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