Private equity investor IndusBridge, led by former Citi executive Ravi Kapoor, has raised Rs 2,000 crore (around $206.6 million) as it looks to step up its focus on India’s defence sector, the Economic Times reported.
IndusBridge set a target of Rs 1,000 crore for the fund at its launch in 2025.
IndusBridge is said to have roped in LPs from family offices, high-net-worth individuals, defence companies and banks. It plans to invest in companies whose products serve both domestic and international markets.
Going forward, defence exports could touch Rs 50,000 crore, the ET report stated, quoting Kapoor. Opportunities are on the rise as India pushes for greater indigenisation in defence manufacturing, creating investment opportunities that the firm plans to tap.
India’s defence and aerospace startups are also increasingly drawing investor interest, although funding in the sector remains concentrated largely in the early-stage segment.
Among recent deals, Kepler Aerospace raised $8 million in a seed round led by Blue Ashva Capital in September 2026, while Aadyah Aerospace raised Rs 31.5 crore ($3.3 million) in a Series A round led by Helios Holdings in June 2026.
The growing interest comes as India is aiming to build a larger domestic defence manufacturing ecosystem and increase its presence in global defence markets.
