Bengaluru-based Sanlayan Technologies has just pulled off something pretty remarkable—raising ₹186 crore in a massively oversubscribed Series A round. And no, this wasn’t some fluke; Sanlayan defence tech funding was led by heavyweight backers like Ashish Kacholia, Lashit Sanghvi, and Jungle Ventures. Existing believers Gemba Capital and Singularity Ventures stuck around for this ride too, while Shastra VC hopped aboard as a new supporter. That kind of investor confidence doesn’t come from smoke and mirrors—it signals a company doing something very right.
And here’s the kicker: this windfall comes hot on the heels of Sanlayan’s earlier ₹36 crore raise in March 2024. Not content to just grow organically, the startup quickly acquired a controlling stake in Dexcel Electronics, a 25-year veteran of Indian defence electronics. Think big-league contributions to projects like Sukhoi, Jaguar, Tejas, and even Chandrayaan-3.
Sanlayan isn’t just another defence tech startup with lofty ambitions and a glossy pitch deck. Its entire operational playbook is built around three big moves: acquiring veteran MSMEs in defence, pouring money into in-house R&D, and locking arms with both Indian startups and global OEMs. Right now, they’re knee-deep in developing an AESA radar for India’s UUV (Unmanned Underwater Vehicle) program, which could be a game-changer for naval operations.
What’s next? A hiring spree of epic proportions. Sanlayan plans to 5x its engineering team in six months. And they’re not looking for fresh grads—they want seasoned scientists, domain experts, military retirees, and top-tier talent from both government and private defence outfits.
1. Introduction
Sanlayan Technologies just did what most early-stage startups only dream of. In a landscape where raising capital is as competitive as the tech itself, this young defence player has bagged a cool ₹186 crore. And this isn’t just about the money—this round screams validation. Investors with sharp noses for opportunity saw something solid here.
The core mission? No fluff—just a bold promise to make India’s defence future homegrown. With China breathing down our neck in tech advancement and the US playing geopolitical chess, India’s military self-reliance is not optional—it’s mission-critical. Sanlayan’s not waiting for someone else to figure that out.
2. The Startup’s Working Model
2.1 Business and Revenue Model
At first glance, Sanlayan’s approach looks straightforward. But look closer—it’s layered, smart, and razor-focused. Their strategy weaves organic growth with a high-leverage acquisition model. It’s not just about building shiny new tech; it’s about buying time by acquiring MSMEs like Dexcel Electronics, which already have a proven legacy. Through these acquisitions, Sanlayan gains existing customer pipelines, infrastructure, and a technical bench that can hit the ground running.
The revenue model banks on defence contracts—government and private—and long-term supply chain engagements. The acquired firms bring cash flow; the in-house R&D brings innovation. Together, it’s a flywheel.
2.2 Product and Service Offerings
Let’s be clear—Sanlayan isn’t selling hobby drones or experimenting in labs. They are building battlefield-grade tech. Their products include AESA radars, electronic warfare (EW) systems that jam or deceive enemy communications, and avionics systems crucial to next-gen aircraft and unmanned systems.
Their current magnum opus? A state-of-the-art AESA radar tailored for India’s UUVs. That’s a serious step in naval tech, and they’re doing it while collaborating with both domestic innovators and global OEMs. No half-measures here.
2.3 Strategic Partnerships
Sanlayan doesn’t believe in working in silos. They’ve partnered with five Indian startups and a slew of international OEMs. These are not PR partnerships for optics—these are real, high-stakes collaborations for joint development. It’s an intelligent move; tech in defence evolves rapidly, and having diverse minds in the mix is a tactical advantage.
3. Founders and Leadership
Founded in September 2023, Sanlayan is the brainchild of Abhijit Kothawale, Rohan Gala, and Rahul Vamsidhar. All three come from hard-hitting stints in defence, aerospace, and industrial tech. This isn’t a team winging it on VC money—they’re bringing battle-tested experience from giants like L&T, Zetwerk, and Tata Advanced.
CEO Rohan Gala doesn’t mince words when it comes to the company’s mission: build India’s tech for critical warfare systems like CUAS (counter-drone) and EW. That clarity of purpose shows in every strategic move Sanlayan makes.
4. Funding Journey
4.1 Seed Stage
When they launched in 2023, Sanlayan raised about $4.4 million. Gemba Capital and Singularity Ventures led the early charge. That round was enough to get their R&D wheels turning and lay the groundwork for serious projects.
4.2 Series A
Fast forward to today, and they’ve snagged ₹186 crore. The oversubscription is proof: investors are not just betting, they’re sure. Jungle Ventures doubled down; Ashish Kacholia and Lashit Sanghvi joined the parade. And Shastra VC? They didn’t want to miss out. This fresh war chest is going straight into hiring, product development, and new acquisitions. Sanlayan’s ambition is no longer confined to paper.
5. Services and Products
5.1 Radar Systems
Their radar tech isn’t just about watching the skies—it’s part of the modern digital warfare stack. The AESA radar in development promises fast tracking, precision, and enhanced underwater navigation—a massive leap for India’s defence marine programs.
5.2 Electronic Warfare Systems
EW systems are where wars are won silently. Sanlayan’s systems aim to confuse, mislead, or completely jam enemy operations. This tech is essential for countering modern threats, from hostile drones to sophisticated missile systems.
5.3 Avionics
They’re also building the tech backbone for aircraft—avionics that can think, communicate, and react in real time. From fighter jets to surveillance planes, Sanlayan’s gear is being designed to function flawlessly under pressure.
6. Industry Growth Trends
6.1 Push for Indigenous Tech
The ‘Atmanirbhar Bharat’ movement isn’t just political sloganeering—it’s forcing real change. And defence is top of that list. India spent over ₹5.94 lakh crore on defence in 2023–24. A growing slice of that pie is now earmarked for domestic innovation. Sanlayan is placing itself right where the money and urgency are headed.
6.2 Tech-Driven Arms Race
Globally, the defence industry is no longer about just bullets and bombs. It’s about electronic dominance—who sees first, who strikes smarter. Startups like Sanlayan are riding this wave of tech transformation and reshaping what modern warfare looks like.
6.3 Global Partnerships
Strategic defence alliances are shifting. As India deepens ties with Israel, France, and the US, it opens up new co-development and export opportunities. Sanlayan’s early global collaborations are a wise hedge for future scale and access.
7. Competitors
7.1 Direct Competitors
Sanlayan faces off with big, seasoned players—BEL, HAL, L&T Defence. These aren’t easy rivals. They’ve got legacy contracts and manufacturing muscle. But agility and innovation are where Sanlayan bites back.
7.2 Indirect Competitors
Then there are the international behemoths—Lockheed Martin, Thales, Northrop Grumman. They supply high-end tech to India, but Sanlayan’s advantage is local understanding and faster iteration. That combo could steal major contracts in the years to come.
8. The Startup’s News
Sanlayan’s meteoric rise is more than just another feel-good startup story. It’s symbolic of India’s changing industrial base, where new-age companies are building what was once considered the exclusive domain of PSUs or foreign giants. Their recent raise is an inflexion point for the Indian startup ecosystem, proving that defence tech isn’t just viable—it’s necessary.
9. Learning for Startups and Entrepreneurs
There’s a lot that founders can learn from Sanlayan:
- Don’t build everything—acquire smart. Their Dexcel buy wasn’t just strategic—it was genius.
- Double down on R&D. In sectors like defence, it’s not optional; it’s your moat.
- National alignment matters. When your business supports national priorities, funding follows.
- Collaborate or die. Innovation now happens across networks, not in silos.
- Timing is everything. They launched when India’s defence startup scene was heating up—and capitalised like pros.
10. Conclusion
Sanlayan Technologies isn’t just chasing contracts—it’s shaping the future of India’s defence ecosystem. The ₹186 crore Series A isn’t the destination; it’s fuel for the next big leap. As India inches closer to defence independence, startups like Sanlayan won’t just participate—they’ll lead.
They’re not here to pitch dreams—they’re building them.
The Startups News
At TheStartupsNews.com, we live to tell the stories that matter. And this one? It’s not just news. It’s a signal that India’s defence game is changing—and startups are the new vanguard.
