360 One Asset, a Mumbai-based investment firm, has successfully raised ₹1,000 crore for a multi-stage fund dedicated to bolstering companies within India's burgeoning defence and space technology sectors.

This fund aims to deliver capital across the entire lifecycle of investee firms, encompassing venture funding, private equity, and growth-stage investments. The initiative targets 15 to 20 companies operating in defence, space, aerospace, and allied strategic technology domains.

Key focus areas include defence electronics, space analytics, electronic warfare, and satellite-based intelligence, surveillance, and reconnaissance capabilities.

Notably, the firm has already deployed capital into four investments under this fund, demonstrating swift execution.

The launch aligns with heightened momentum in India's defence and space landscapes.

India's defence budget for FY25 stands at an impressive INR 6.22 lakh crore, underscoring the government's commitment to modernisation and self-reliance.

Defence exports have surged at a compounded annual growth rate of 84 per cent from FY21 to FY25, reflecting the success of initiatives like Make in India.

The private space sector has witnessed explosive growth, with over 250 non-governmental companies now active, challenging the traditional dominance of public entities.

According to a report by The Economic Times, the fund employs a strategic allocation: approximately 20 per cent for venture investments, 30 per cent for growth equity, and 50 per cent for late-stage private equity and pre-IPO opportunities.

360 One Asset has conducted evaluations of more than 100 companies, cultivating a robust pipeline for subsequent deployments.

Enhancing the fund's credibility is an advisory group featuring former leaders from India's defence research establishment, the national space agency, and a ex-defence secretary.

This panel imparts invaluable operational, policy, and strategic insights, positioning the fund to navigate complex regulatory and technological terrains effectively.

The move signals investor confidence in India's strategic push towards indigenous capabilities amid geopolitical tensions and technological disruptions.

By bridging funding gaps, such funds could accelerate innovation in critical areas like electronic warfare and space-based ISR, vital for national security.

Private participation is poised to complement efforts by DRDO and ISRO, fostering a vibrant ecosystem for defence manufacturing and space exploration.

As defence exports climb and budgets expand, opportunities for high-growth returns abound, attracting sophisticated investors like 360 One Asset.

This ₹1,000 crore infusion exemplifies the financial sector's pivot towards high-impact, mission-critical technologies.

Based On ET News Report