Avaana Capital leads $1.4 million funding round in Dreamfly Innovations to boost drone battery tech

Avaana Capital has led a seed funding round, alongside Sunicon Ventures and others, in Dreamfly Innovations, a Bengaluru-headquartered drone battery solutions provider. The round raised $1.4 million (approximately ₹12 crore), according to the battery tech startup’s announcement today. The company states that this funding will be used to scale up production, expand the team, and boost research and development of its sustainable and fire-resistant battery solution.

Avaana Capital invests in future market leaders leveraging tech-driven innovation to scale solutions for climate and sustainability while delivering significant returns. Avaana also invests in climate mitigation, adaptation, and resilience across key sectors like energy transition, resource management, mobility and supply chains, and sustainable agriculture and food systems, it adds.

The battery company shares that it is working toward achieving India’s goal of becoming a major global hub for drones by 2030. It mentions that it currently serves high-profile clients, including Tata Advanced Systems Ltd. (TASL), the aerospace arm of Tata Group; Larsen and Toubro (L&T); General Aeronautics, a drone technology company in precision spraying and agriculture; Noesky India Ltd., a wholly owned subsidiary of RattanIndia Enterprises Ltd.; and a range of other high-profile clients.

Signalling the strong potential of investing in the drone market, Kajal Shah, co-founder and CEO of Dreamfly Innovations, says, “With the global drone market projected to reach $54 billion by 2025, India stands to capture a substantial share, potentially reaching $4.2 billion and expanding to $23 billion by 2030, according to the EY-FICCI report 'Making India the Drone Hub of the World.' The biggest challenge that India faces is the lack of a component ecosystem for drones, which forces domestic manufacturers to depend on imported materials.”

Shah explains that as drones gain traction in sectors like agriculture, geospatial mapping, and logistics, the demand for reliable batteries has risen. Drone OEMs struggle to keep up with evolving battery technologies, addressing limited lifespans, and resolving safety concerns. “Dreamfly Innovations is poised to tackle these challenges with patented thermal battery case designs and advanced cell stack innovations, effectively addressing the core concerns of drone developers,” Shah, CEO of Dreamfly Innovations, adds.

Thermal battery case designs can reduce operating temperatures by as much as 20°C, significantly lowering fire risks. Cell stack designs boost electrical efficiency and reduce drone weight for improved performance.

“Under its EIONIC brand, Dreamfly offers smart drone batteries tailored to diverse applications, including agriculture, terrain mapping, surveillance, and logistics. These innovations align with the Government of India’s Atmanirbhar Bharat initiative by reducing dependency on imported batteries and fostering domestic technological advancements,” the company states.