Defence-tech startup Newspace Research and Technologies is in discussions to raise $35-40 million in a Series C funding round, combining equity and debt, according to livemint.com. The company aims to secure this capital to support its growth despite challenges in revenue growth and delayed government contract payments.
The funding talks involve investors such as 360 One Asset Management and Avendus Capital, who are evaluating the startup's potential amid uneven financial performance. Newspace Research specializes in defence technology, aerospace, drones, and deeptech sectors. The company is seeking to balance its capital structure with a mix of equity and debt to fuel its expansion plans.
This funding round is significant in the defence-tech startup ecosystem, where capital-intensive projects and government contracts often lead to cash flow pressures. Comparable startups in the sector have attracted similar funding to scale R&D and production capabilities. The involvement of established investors like 360 One and Avendus signals confidence in Newspace Research's technology and market positioning despite current financial hurdles.
Newspace Research's Series C round is ongoing, with the company targeting a close in the near term. The exact timeline for the funding closure has not been disclosed, but the discussions were reported on September 4, 2026, marking a critical phase for the startup's capital raise.