Bengaluru based aerospace startup Airbound has raised $37 million in Series A funding to scale autonomous aircraft production and commercial operations. The round was led by Greenoaks, with participation from DoorDash, Lachy Groom, Lightspeed and Humba Ventures.
This latest investment takes Airbound’s total funding to nearly $50 million since its founding in 2023. The capital will be used to speed up engineering, build commercial scale manufacturing capacity and prepare aircraft for wider use.
Alongside the fundraise, Airbound signed an agreement with the Andhra Pradesh government to build an autonomous drone delivery network across three cities. The network will support retail, e commerce and healthcare deliveries.
The company aims to eventually handle up to 10,000 flights daily. CEO Naman Pushp said the project is not based on government procurement or subsidies. Instead, the state is helping with regulatory frameworks, while businesses using the service will generate revenue.
Andhra Pradesh Project
The Andhra Pradesh project will be larger than Airbound’s healthcare deployments. The three city network could become a model for aerial delivery in other parts of India.
Pushp noted that India sets a tough benchmark because customers expect ultra fast, low cost delivery. He said, “The bar for delivery in India is high. The benchmark is 10 minutes to your doorstep, at an extremely low cost.”
Airbound is designing autonomous aircraft to improve aerial transport economics. The goal is to reduce aircraft weight compared to cargo weight.
A conventional aircraft carrying 100 kg of cargo may weigh 400 kg including fuel and structure. Airbound aims to reverse this balance so most of the flight weight comes from the payload.
The company believes this design can make aerial transport cheaper and practical for everyday deliveries. Pushp said, “Better physics leads to better economics, which unlocks the potential to move people and goods for a fraction of a cent.”
Greenoaks partner Neil Shah said Airbound is tackling the trade off between cost and speed in transport. Trucks are cheaper but slower, planes are faster but costly — Airbound is trying to challenge that balance.
Healthcare Proves Technology
Airbound designs and manufactures its aircraft in Bengaluru. It has already completed over 1,000 autonomous flights with Narayana Health.
These flights carried diagnostic samples between hospitals, cutting delivery times from hours to minutes. The company reported zero mission failures during these operations.
The Andhra Pradesh agreement moves Airbound from controlled healthcare operations to a larger commercial delivery network. The service will carry products for retail, e commerce and healthcare providers.
In the future, Airbound wants to expand into freight and passenger transport. Its long term goal is to make a 300 km intercity journey possible in about 20 minutes, though this remains a future ambition.
Dronetech Startups in India
India has a growing ecosystem of drone and aerospace startups working in delivery, agriculture, defence, mapping and logistics. Many are building locally designed aircraft and autonomous systems for domestic conditions.
Airbound is positioning itself in this ecosystem with a focus on aerial logistics. Its hospital partnerships provide proof of concept, while the Andhra Pradesh network will test its commercial model.
This new funding allows Airbound to move from technology development to manufacturing and deployment. The company must now prove its aircraft can operate safely and economically at scale.
If the Andhra Pradesh network reaches its planned size, it could become a landmark test for drone delivery in India. Airbound’s immediate priorities are aircraft development, regulatory approvals, manufacturing and building enough demand to support its 10,000 flight a day vision.
