India’s Airbound bags $37M to take on trucks with rocket-like drones

Indian startup Airbound has secured $37 million in new funding, aiming to transform logistics by making air delivery as cost-effective as road transportation. This Series A round, led by Greenoaks with participation from DoorDash, Lachy Groom, Lightspeed, and Humba Ventures, brings Airbound's total raised capital to nearly $50 million since its inception three years ago.

Airbound's technology focuses on vertical-flight drones, designed to weigh less than their cargo, aiming to reduce energy consumption compared to conventional aircraft. The company's TRT drone, currently weighing 3.3 pounds and carrying 2.2 pounds of payload, is set to evolve, with the next version expected to carry up to 11 pounds.

Airbound's TRT has already logged over 13,000 autonomous flights across Bengaluru and Guntur, with successful deliveries for the Narayana Health hospital network, transporting diagnostic samples in just seven minutes over a 2.5-mile route. The startup aspires to create a drone delivery network connecting three cities in Andhra Pradesh, targeting 10,000 flights daily.

This ambitious goal necessitates a fleet of between 250 and 1,000 aircraft, though Pushp anticipates a more feasible number closer to 250. The Andhra Pradesh government is collaborating with Airbound to establish the necessary regulatory framework for such a network. Airbound, a Bengaluru-based company, manufactures its aircraft in-house, with a focus on delivering a product that logistics networks could universally utilize.

Despite its rapid growth, Airbound remains pre-revenue, with regulatory hurdles, particularly securing BVLOS (beyond visual line of sight) approvals, posing significant challenges to its commercial operations.