Dreamfly Innovations, a Bengaluru-based deeptech startup, has raised ₹3 crore in venture debt from the Small Industries Development Bank of India (SIDBI) to bolster working capital and scale manufacturing as demand for advanced battery systems rises across defence, logistics, and commercial drone sectors.
Use of proceeds and operational priorities
The company says the ₹3 crore facility will be deployed primarily to meet working capital needs and expand production capacity. As a hardware-focused enterprise, Dreamfly requires steady capital for raw materials, production cycles and timely delivery to customers.
Planned operational improvements include supply-chain optimisation, tighter inventory management and increased manufacturing throughput to service growing order volumes and long-term contracts with drone OEMs and enterprise clients.
Technology focus: advanced battery systems
Dreamfly designs and manufactures high-performance smart battery systems for drones, electric aviation, aerospace and defence applications. Its R&D emphasises next-generation chemistries and architectures—such as solid-state and graphene-enhanced solutions—aimed at improving energy density, thermal performance and safety relative to conventional lithium-ion packs.
The product portfolio includes customised battery packs and intelligent battery management systems (BMS), engineered for reliability in mission-critical and harsh operational environments. Such offerings address the specific power, weight and safety requirements of unmanned aerial systems and advanced mobility platforms.
Market context: growing drone ecosystem and localisation push
India’s drone market has expanded rapidly, supported by regulatory reforms, defence modernisation and a widening set of commercial applications including agriculture, infrastructure inspection, mapping, logistics and border surveillance. This growth is creating parallel demand for domestic, high-performance energy storage solutions.
By positioning itself as a local supplier of advanced batteries, Dreamfly aims to reduce import dependence and align with government initiatives to promote indigenous manufacturing. The venture debt is expected to accelerate fulfilment of large-scale orders and strengthen the startup’s role in the supply chain.
SIDBI’s role in startup financing
SIDBI has been increasingly active in providing venture debt and structured finance to early- and growth-stage firms, particularly in capital-intensive segments such as manufacturing, deeptech and clean energy. Venture debt offers startups non-dilutive capital to scale operations without immediate equity dilution.
Extending this facility to Dreamfly underscores SIDBI’s objective of supporting innovation-led enterprises that contribute to India’s technology and manufacturing capabilities.
Outlook
The infusion positions Dreamfly to strengthen its operational base, expand production and deepen industry partnerships in a competitive market. As investment in drones, aerospace and energy storage continues, the startup stands to benefit from long-term structural opportunities across defence and commercial sectors.
