Bengaluru-based aerospace startup Airbound, which develops light autonomous aerial vehicles for delivery, has raised $37 million in a Series A funding round. The company also signed an agreement with Andhra Pradesh to establish a drone delivery network in three cities, marking a step toward commercializing its aircraft and expanding their application in logistics.
The funding round was led by Greenoaks, with participation from new and existing investors, including DoorDash, Lachy Groom, Lightspeed, and Humba Ventures. Since its launch in 2023, Airbound has raised nearly $50 million.
Airbound stated that the Series A funds will be used to accelerate engineering development, scale up production, and execute go-to-market initiatives.
Naman Pushp, founder and CEO of Airbound, said: 'We believe in a world where all movement happens in the air. Not some of it. Not most of it. All of it. A world where flying is cheaper than a bus, where moving one package costs less than transporting 20 tons by truck, and where we look at cars the way we look at horses today.'
He added that the company is building a system where 'the best physics leads to the best economics, unlocking the potential to move people and goods for a fraction of the cost.'
Airbound combines advancements in autonomy and materials science with what it calls a physics-based approach, developing transport aircraft designed to weigh less than the payload they carry. The company noted that transporting a single passenger or about 100 kg of cargo typically requires a specially built aircraft weighing around 400 kg, including fuel and payload, meaning most of the weight goes into lifting the aircraft itself rather than the transported goods. Airbound claims its vehicles are designed to reverse this formula so that most of the weight in flight is the carried cargo.
Neil Shah, a partner at Greenoaks, commented: 'Goods transportation has always forced a choice between speed and cost.'
He continued that trucks are cheap but slow, and airplanes are fast but expensive, and nothing has broken this trade-off in a century. 'Airbound is doing that. When one autonomous aerial vehicle can move one package with the economic efficiency of a fully loaded 20-ton truck, fast and cheap delivery ceases to be a trade-off, and roads cease to be the standard.'
Airbound's vehicles, developed, manufactured, and operated in India, are assembled and tested domestically. The company reported completing over 1,000 autonomous flights without mission failure in partnership with Narayana Health, transporting diagnostic samples between medical facilities and reducing delivery time from hours to minutes.
As part of the agreement with Andhra Pradesh, Airbound will build a drone delivery network connecting three cities to ensure faster and cheaper transportation. The company plans to scale this network to 10,000 daily flights, supporting retail, e-commerce, and medical delivery in the region. Airbound believes this program could serve as a model for broader air delivery operations nationwide.
Pushp emphasized the complexity of the task, noting: 'The delivery threshold in India is high. The benchmark is 10 minutes to your door, at an extremely low cost. That is the challenge.'
He added that if something can be created that works in India, it generally works anywhere else.
Harrison Shi, Head of Product at DoorDash Labs, commented: 'We are excited to see bold new approaches in autonomous delivery, and we like supporting teams solving complex problems.'
He noted that DoorDash was drawn to Airbound's willingness to return to first principles and embrace the physical and cost constraints that hinder the widespread adoption of air delivery. 'Their progress in India, one of the most demanding operational environments in the world, shows what passionate engineering can achieve, and we look forward to what they create.'
Ultimately, Airbound plans to apply the same aircraft technology not only for package delivery but also for freight transport, and eventually for intercity passenger transport.