Norwest, Skegen lead $40 million in Raghu Vamsi Aerospace

Hyderabad-based aerospace and defence manufacturer Raghu Vamsi Aerospace Group (RVAG) has raised $40 million (around Rs 400 crore) in a round led by growth equity investor Norwest and Skegen Asset Management.

The round also saw participation from Indus Bridge Ventures, GJNX Ventures, and investor Ashish Kacholia, the company said in a statement. The fresh capital will be used to expand manufacturing capacity across its facilities in India, the UK, and the US, develop its integrated manufacturing campus at Hardware Park near Hyderabad International Airport, and strengthen its mission systems and deep-tech businesses.

Founded in 1992, RVAG manufactures precision aero-engine components and sub-assemblies for global aerospace original equipment manufacturers (OEMs), including GE Aerospace, Collins Aerospace, Honeywell, and Safran. It also supplies engineering components to energy companies such as Baker Hughes, Halliburton, SLB, and GE. The company said it currently has an order book exceeding Rs 2,500 crore.


Prior to this round, the company had raised $15.5 million and reported revenues of Rs 361 crore in FY25, up 48% from the year before, per Tracxn data. Profit for the year was at Rs 20 crore.

Deeptech has emerged as one of the hottest investment themes of 2026, with capital flowing into AI, spacetech, robotics, advanced manufacturing, and energy transition companies. So far this year, 149 companies have raised $1.8 billion, sharply higher than the $712 million raised by 215 firms in the same period last year.

Beyond contract manufacturing, RVAG has expanded into defence technologies through its mission systems and deeptech verticals. It develops micro turbojet engines, aircraft hydraulic pumps, and missile subsystems, while its ARROBOT platform is building drone technologies and unmanned ground vehicles for India's armed forces.

"This investment is a vote of confidence in what our team has built over the last two decades," said managing director Vamsi Vikas. He said the funding would enable the company to scale operations while accelerating investments in mission systems and autonomous technologies.

The company employs more than 1,200 people and operates over 10 facilities across three countries. It offers end-to-end aerospace manufacturing capabilities spanning design, engineering, manufacturing, testing, and assembly.

“Raghu Vamsi has created a uniquely integrated manufacturing platform trusted by leading aerospace and energy OEMs for its technical depth and disciplined execution,” said Shiv Chaudhary, partner at Norwest.