Bengaluru-based deeptech company DheyaTech has raised ₹43 crore in a funding round led by Avaana Capital, with participation from Unimech Aerospace and Manufacturing. The company plans to use the capital to expand production, build an integrated testing facility and accelerate deployment of its small gas turbine engines.
DheyaTech Funding Comes as Deeptech Investment Gains Attention
The latest DheyaTech funding is a significant development for India’s deeptech manufacturing ecosystem. The Bengaluru-based company, which develops small gas turbine engines, raised ₹43 crore in a round led by Avaana Capital, with existing investor Unimech Aerospace and Manufacturing also participating. The funding was announced on September 17, 2026.
Founded in 2018 by aerospace engineers with experience at companies including GE Aviation and Rolls-Royce, DheyaTech has spent years developing small gas turbine technology in India. The company is now moving from technology development toward production and commercial deployment.
The funding will support increased manufacturing capacity, an integrated testing facility and closer work with domestic and international customers. The company has also targeted flight trials for its engines in the fourth quarter of 2026.
₹43 Crore Investment to Expand Gas Turbine Manufacturing
DheyaTech develops a family of small gas turbine engines covering thrust requirements from 20 kgf to 400 kgf. The company says its technology can serve applications across advanced aerial platforms, distributed power generation and next-generation energy systems.
The fresh capital is expected to help the company increase production capacity and establish a fully integrated testing facility. Testing is particularly important for gas turbine engines because the technology involves multiple engineering disciplines, including turbomachinery, combustion, materials, electronic controls and precision manufacturing.
The company is also working with customers to accelerate the deployment of its technology. Moving from prototype development to reliable commercial production can require extensive testing and validation, making dedicated infrastructure an important part of the company’s next stage.
For DheyaTech, the funding therefore represents more than additional working capital. It is intended to support the transition from research and development toward manufacturing readiness and customer deployment.
Avaana Capital Leads the Latest DheyaTech Funding Round
Avaana Capital led the ₹43 crore funding round. Unimech Aerospace and Manufacturing, which has an existing strategic relationship with DheyaTech, also participated.
Avaana Capital partner Vikas Verma said the company is developing technology in an area of strategic importance and described DheyaTech’s work as part of a broader shift toward Indian companies building advanced technology domestically.
Unimech Aerospace and Manufacturing is also supporting DheyaTech as a strategic manufacturing partner. Its role includes precision manufacturing of gas turbine components and systems.
This relationship highlights an important aspect of deeptech manufacturing. Startups developing complex hardware often need specialised manufacturing capabilities that can be difficult to build entirely in-house during the early stages. Partnerships with established engineering and manufacturing companies can help bridge that gap.
Indigenous Gas Turbine Technology Is the Core Focus
DheyaTech is attempting to develop small gas turbine technology through an integrated engineering approach. The company says its internal team works across the product development chain, from design and development to manufacturing and testing.
The company has also developed a proprietary adaptive engine control unit, or ECU, for its gas turbine systems. Electronic control is an important part of modern turbine technology because it helps manage engine operation across different conditions.
DheyaTech is developing hydrogen-related technologies as well. In collaboration with the Indian Institute of Science in Bengaluru, it has developed a hydrogen-based flexi-fuel combustor for a 60-kW flexi-fuel turbogenerator. The company is also working on hydrogen propulsion and power-generation technologies.
These projects place the startup at the intersection of aerospace, energy and deeptech manufacturing.
Defence and Energy Applications Create Multiple Markets
DheyaTech’s engines are being developed for more than one end market.
The company has identified advanced aerial platforms and energy systems among its target applications. Its technology portfolio includes small gas turbine engines as well as fuel-flexible and hydrogen-related systems.
The company is also pursuing independent airworthiness certification for its gas turbine engines under the Centre for Military Airworthiness and Certification, or CEMILAC, which operates under the Defence Research and Development Organisation.
Certification is an important step for technologies intended for mission-critical aerial applications. Such products need to demonstrate reliability, performance and safety before they can be deployed in regulated environments.
The company’s work therefore sits within a broader Indian push to develop domestic capabilities in aerospace and defence technologies that have traditionally involved significant imported components or systems.
Why Deeptech Manufacturing Needs More Capital
Deeptech startups generally face a different funding challenge from software companies. Hardware development can require laboratories, specialised equipment, manufacturing infrastructure, testing facilities and lengthy validation cycles before products generate meaningful commercial revenue.
Gas turbine technology is particularly complex because a functioning engine requires several systems to work together under demanding operating conditions.
DheyaTech’s new funding is being directed toward precisely these production and testing requirements. The company wants to increase manufacturing capacity while building infrastructure that can support engine testing and deployment.
This also explains why partnerships matter. Unimech Aerospace and Manufacturing’s involvement gives DheyaTech access to precision manufacturing capabilities while the startup continues to focus on its proprietary technology.
Bengaluru Startup Targets Production Readiness
DheyaTech’s Bengaluru base places it within one of India’s established aerospace and technology ecosystems. The city has a large concentration of aerospace companies, engineering talent, research institutions and technology startups.
The company was founded by aerospace engineers who had experience at global turbomachinery companies, including GE Aviation and Rolls-Royce. According to Business Standard, the startup has spent nearly a decade developing small gas turbine technology in India.
Its current funding round comes at a time when Indian policymakers and investors are putting greater attention on domestic deeptech capabilities. Recent government initiatives have also focused on encouraging startups and MSMEs working in advanced technologies, including defence, aerospace and electronics.
For Tier-2 and Tier-3 cities, the impact of such investments can extend through specialised suppliers, engineering services, component manufacturers and logistics networks as production ecosystems expand beyond a single company.
Flight Trials and Commercial Deployment Are Next
The immediate focus for DheyaTech is execution.
The company has targeted flight trials of its gas turbine engines for the fourth quarter of 2026. It also plans to establish its integrated testing facility and increase production capacity using the newly raised capital.
The company says it already has confirmed orders from Indian and global original equipment manufacturers, although details of those customers have not been publicly disclosed in the available reports.
The transition from development to commercial deployment will depend on successful testing, certification, manufacturing scale-up and customer adoption.
The ₹43 crore funding gives DheyaTech additional capital to pursue these objectives, but the long-term commercial outcome will depend on how effectively the company converts its technology into certified, manufacturable and commercially viable products.
What the Funding Means for India’s Deeptech Ecosystem
The DheyaTech funding highlights a broader change in India’s startup landscape. Deeptech companies are increasingly working on technologies that require substantial engineering, manufacturing and testing capabilities rather than purely digital products.
Gas turbine engines are one example. Similar capital-intensive areas include semiconductors, drones, advanced materials, defence systems, robotics and clean-energy technologies.
For investors, these businesses can involve longer development cycles and higher technical requirements. For India, however, successful commercialisation could strengthen domestic manufacturing capabilities and create specialised supply chains.
DheyaTech’s next milestones will therefore be closely tied to production scale-up, testing, certification and customer deployment. The ₹43 crore round provides funding for that next phase, while the company’s ability to turn its technology into repeatable commercial production will determine the impact of the investment.
Key Takeaways
- DheyaTech has raised ₹43 crore in a funding round led by Avaana Capital.
- Unimech Aerospace and Manufacturing participated as an existing investor and strategic manufacturing partner.
- The funding will support production expansion, an integrated testing facility and commercial deployment.
- DheyaTech is developing small gas turbine engines for applications across aerial platforms, defence, energy and related systems.
FAQs
What is DheyaTech?
DheyaTech is a Bengaluru-based deeptech company founded in 2018 that develops small gas turbine engines and related propulsion and energy technologies. Its engines cover thrust requirements ranging from 20 kgf to 400 kgf.
How much funding has DheyaTech raised?
DheyaTech has raised ₹43 crore in its latest funding round. The round was led by Avaana Capital, with participation from Unimech Aerospace and Manufacturing.
How will DheyaTech use the ₹43 crore?
The company plans to use the capital to scale production, establish an integrated testing facility for its gas turbine engines and work with domestic and international customers to accelerate deployment.
What are DheyaTech’s gas turbines used for?
The company’s small gas turbine engines are being developed for applications including advanced aerial platforms, propulsion and energy systems. DheyaTech is also developing fuel-flexible and hydrogen-related technologies for power and propulsion applications.
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