Venttup Raises $3 Million From Rainmatter and Unicorn India Ventures to Build Precision Parts for Defence, Space and Energy

Bengaluru-based Venttup has raised $3 million in a pre-Series A round co-led by Rainmatter, Zerodha's investment arm, and Unicorn India Ventures. The company announced the round on 29 October 2026. It will use the money to open a precision manufacturing facility in Bengaluru and expand a model that turns India's scattered MSME machine shops into a supply chain for high-specification hardware.

The gap Venttup is filling

India has a growing number of hardware-heavy deep-tech companies: drone makers, satellite builders, electrolyser and battery start-ups, defence electronics firms. Many of them hit the same problem. Designing a component is the easy part. Getting it machined, tested and delivered to aerospace or defence tolerances, in small batches and on time, is much harder. Too often the fallback is importing parts.

Venttup runs a manufacturing-as-a-service model. It takes a customer's requirement through design, prototyping, testing and contract manufacturing. Production is spread across a network of Indian MSMEs and the company's own facility. CEO and co-founder Sandeep Nair describes an engineering-led approach combining design standardisation, rapid prototyping, testing and production through Indian MSMEs.

Its customers include OEMs, technology companies and deep-tech start-ups, among them firms looking for domestic alternatives to imported components.

Where the money goes

According to the company and coverage by Inc42, TimesTech and Indian Startup News, the new capital will go to:

• A precision manufacturing facility in Bengaluru for precision machining, turning and sheet-metal work;
• Rapid prototyping infrastructure, so customers can move from drawing to test part faster;
• Engineering hires; and
• AI tools for B2B sourcing, to match jobs to the right shop in its supplier network.

The company says it is focusing on four verticals, including energy transition and data centres and aerospace, defence and space systems.

Traction

Venttup says its revenue grew five-fold to ₹10 crore in FY26 and that it has an order pipeline of about ₹30 crore. These are company-reported figures and have not been independently audited.

Unicorn India Ventures is a repeat backer. It led Venttup's seed round in September 2024. Managing partner Bhaskar Majumdar said the existing investment relationship and production model supported a further investment. He pointed to the combination of an in-house precision facility in Bengaluru and partner MSMEs as the reason for investing again. The company was co-founded by Sandeep Nair, M Wasim Ankli and Joseph Panakkal.

Why it matters

India's defence and space localisation drive has moved demand down the supply chain. Prime contractors and start-ups now need domestic sources for brackets, housings, enclosures and machined assemblies that used to arrive in imported kits. Platforms such as Venttup aggregate that demand and add a quality and engineering layer on top of thousands of small workshops. That could raise how much India's MSME base contributes to strategic manufacturing.

The round is small next to fabs or launch-vehicle raises. But it backs one of the less visible bottlenecks in Indian deep tech: actually building the hardware.

Sources

• https://timestech.in/venttup-raises-3-million-in-pre-series-a-funding-round/