Business APAC
May 23, 2025
Titan Capital, the venture capital firm co-founded by Snapdeal’s Kunal Bahl and Rohit Bansal, has unveiled a new investment arm exclusively targeting the defence-tech sector. The initiative, announced this week, aims to fund early-stage Indian startups building technologies critical to national security and dual-use applications.
Backing India’s Push for Technological Sovereignty
India’s defence sector has seen increased policy and budgetary support for indigenous innovation. In FY 2025–26, the Indian government allocated over 68% of its ₹1.72 lakh crore ($20.6 billion) defence capital budget toward domestic procurement. This has created fertile ground for startups in defence-tech domains like AI-powered surveillance, autonomous weapons systems, cybersecurity, and space-based intelligence.
“We’re investing in India’s future strategic capabilities,” said Kunal Bahl, Co-founder of Titan Capital. “There’s a clear gap in early-stage funding for deep-tech startups focused on national security. We want to bridge that.”
Target Sectors: AI, Drones, Cybersecurity, and Satellite Tech
The new defence-tech arm will fund ventures building AI-based decision systems, unmanned aerial vehicles (UAVs), quantum encryption solutions, and next-gen radar and imaging technologies. According to people familiar with the plans, Titan is already evaluating five potential investments and could announce its first funding deals by the end of Q2 2025.
Co-founder Rohit Bansal emphasized that Titan’s approach will go beyond capital. “We’re offering strategic mentorship, defence domain expertise, and long-term vision,” he noted. “This isn’t a trend—it’s a national imperative.”
Industry Experts Welcome the Move
Industry leaders have hailed Titan Capital’s move as a pivotal moment for India’s defence-tech ecosystem. “It signals a shift where top-tier VCs are beginning to understand the strategic value of this sector,” said Ruchi Sharma, MD of Bharat Innovations. “Capital and credibility go hand in hand—Titan brings both.”
Until now, India’s defence-tech space has largely been driven by government grants or defence public sector undertakings. Titan’s entry is expected to open the floodgates for private-sector funding and global partnerships.
What Titan’s Investment Could Unlock for India’s Future
Titan Capital’s entry into defence-tech has the potential to catalyze a new era of strategic innovation in India. By nurturing startups in their formative stages, the firm could accelerate the development of next-generation military technologies, reduce dependency on foreign defence imports, and create a vibrant ecosystem of high-skill jobs in engineering, cybersecurity, and aerospace.
Furthermore, successful ventures from this portfolio may not only serve domestic needs but also position India as a global exporter of defence-tech solutions, transforming the nation into a net technology supplier rather than a consumer. This aligns with India’s broader vision of becoming a $5 trillion economy with a robust, innovation-led industrial base.
Titan Capital’s Legacy and Strategic Shift
Titan Capital has a reputation for spotting early winners—its portfolio includes Ola, Razorpay, Mamaearth, and Urban Company. With the launch of this defence-tech vertical, the firm is signalling a new phase of investment aligned with national goals and strategic technologies.
According to internal sources, Titan is also exploring partnerships with Indian defence accelerators and DRDO-linked research labs to strengthen its pipeline.
A Defining Moment for India’s Defence-Tech Ecosystem
As India strives for technological independence in defence and aerospace, the timing of Titan Capital’s defence-tech investment arm could not be more strategic. By injecting early-stage capital and operational mentorship into national security ventures, Titan may help turn India into a global innovation hub for defence technology.
With increased interest from other VCs and policy support continuing to rise, the future of India’s defence-tech sector looks not just promising, but mission-critical.
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