AITMC Ventures and DroneAcharya Sign a Merger Agreement
In a regulatory filing, DroneAcharya announced that it has inked a term sheet for a "strategic company merger" with agri-drone business AITMC Ventures. DroneAcharya did not, however, provide any other information regarding the deal. The two businesses will collaborate to provide their clients with industrial, enterprise, defence, and spacetech solutions, according to a LinkedIn post by DroneAcharya. Additionally, it stated that these solutions will include industry-leading software, hardware, automation, capacity building, and skill development products. According to DroneAcharya's post, this proposed merger is a game-changer for both businesses and will allow India to establish new industry standards on the world map.
DroneAcharya’s Order Book
Additionally, the board of the publicly traded drone firm authorised the implementation of an Employee Stock Option Plan (ESOP) policy. DroneAcharya stated earlier this week that it has secured a contract with the defence ministry for INR 7.53 lakh to offer training courses focused on drones. Eight Indian Army officials will receive drone pilot training and drone construction training from the company in accordance with the contract. In addition, the business released many important announcements in December. This included partnering with Canada's drone startup Volatus and establishing a new subsidiary as part of a strategic move into the Middle East.
Financial Outlook of DroneAcharya
In terms of finances, DroneAcharya's profit for the six months ending in September 2024 (H1 FY25) decreased by 62.1% to INR 1.50 Cr from INR 3.96 Cr during the same time the previous year. Nonetheless, operating revenue increased 28.8% to INR 26.90 Cr in the reviewed year from INR 20.88 Cr in the first half of FY24. The agri-drone company AITMC Ventures, run by AVPCL, is present in 12 states and has 50 Global Incubation and Skill Hubs (GISH) and 20 World Incubation and Skill Hubs (WISH) that are only focused on the drone and agricultural industries. The company, which was founded in December 2016 by Deep Sisai and Preet Sandhuu, provides drone training as well as other agricultural skill development programs. In October 2023, the business submitted its draft red herring prospectus (DRHP) to NSE Emerge for an IPO. Nevertheless, there have been no further developments about the IPO.
Performance of Drone Startup Sector in India in 2024
Due to rising demand from a variety of industries, including e-commerce, defence, and agriculture, the drone market in India is expanding quickly. The sector has grown even more as a result of encouraging government policies and programs like the Drone Shakti plan. Investments are booming, with large sums of money going to R&D and startup ecosystems that focus on cutting-edge drone technologies.
At a compound annual growth rate (CAGR) of 17.0%, the India drone market is expected to increase from USD 654 million in 2024 to USD 1,437 million by 2029. It is anticipated that the number of drones in the Indian drone market will increase from 10,803 units in 2024 to 61,393 units in 2029.
This includes improvements in battery life and long-range capabilities, both of which are essential given India's enormous and varied geography. Additionally, the market is changing from mainly military applications to a wide range of commercial purposes, such as healthcare for the delivery of medical supplies, urban planning for smart city projects, and agriculture for crop assessment. Due to their creative approaches to drone technology, many firms have emerged as frontrunners in the dynamic entrepreneurial landscape.
Nitin Konde
