India’s deep-tech sector is attracting funding in areas that require years of research, specialized manufacturing and strong industry partnerships. Two recent developments show this clearly.

Bengaluru-based defence electronics company Sanlayan is reportedly seeking $35-40 million at a targeted valuation of up to $200 million. Meanwhile, IIT Delhi-originated textile startup IndigoTex has raised Rs. 5 crore led by IAN Angel Fund.

The companies operate in very different industries, but both are focused on building technology-led products from India.

Sanlayan’s planned fundraise and defence focus

Sanlayan Technologies was founded in 2023 by Abhijit Kothawale, Rohan Gala and Rahul Vamshidhar.

The Bengaluru-based company develops electronics and systems for the aerospace, defence and space sectors. Its areas of work include radar systems, electronic warfare, avionics, signal processing and mission-critical electronics.

Sanlayan is reportedly in talks to raise between $35 million and $40 million. The company is targeting a valuation in the range of $150 million to $200 million, meaning the final valuation has not yet been confirmed. The discussions are at an early stage, according to a report by Mint.

The proposed capital could be used for acquisitions, research and development and the expansion of manufacturing capabilities. Sanlayan has followed a strategy of combining in-house technology development with the acquisition of existing defence electronics businesses.

This approach can help the company gain experienced teams, production facilities and customer relationships faster than building every capability from the beginning.

The broader aim is to support India’s need for locally designed defence systems. Domestic development can reduce dependence on imported electronics and help Indian companies participate in large defence and aerospace programmes.

Sanlayan operates in a competitive ecosystem that includes defence-tech companies such as Tonbo Imaging, ideaForge and Paras Defence, although their product areas are not identical. The company’s challenge will be to convert engineering expertise and defence contracts into repeatable, scalable business.

IndigoTex’s Rs. 5 crore funding

IndigoTex was founded in 2024 by Satendra Singh, Professor B.S. Butola and Dilip Singh.

The startup develops wool fabrics, technical textiles and waterless textile-processing technology.

IAN Angel Fund led the Rs. 5 crore round, with participation from SIDBI, FITT and IIT Delhi Angels. The funding will support factory setup, manufacturing, hiring, product development, research, certifications and international expansion as per IAN Group.

One of IndigoTex’s key products is IndiWool Denim. It combines the familiar strength and look of denim with the warmth and comfort of wool. The company is also developing washable wool and poly-wool fabrics through its ECOTEX technology.

The purpose is to address two common problems. Wool garments often require dry cleaning, while conventional textile processing can use large amounts of water and chemicals. IndigoTex’s waterless finishing process is designed to make wool-based fabrics easier to maintain and more sustainable.

The company is setting up a manufacturing and finishing facility in Sonipat, Haryana, while continuing research at IIT Delhi’s Research and Innovation Park. It is also exploring markets in Europe, North America, Australia and other colder regions.

Why these stories matter

Sanlayan’s planned fundraise shows growing investor interest in Indian defence manufacturing and strategic electronics.

IndigoTex’s round shows that deep-tech funding is also moving into advanced materials and sustainable manufacturing, not only artificial intelligence or space technology.

Both companies now need to move from promising technology to reliable commercial delivery. That means building factories, securing certifications, winning customers and managing long sales cycles.