GalaxEye Space is a space tech startup that sold an undisclosed stake worth Rs 8.28 crore to a drone  manufacturing company IdeaForge. GalaxEye specializes in a constellation of multi-sensor Earth  Observation satellites. The startup previously collaborated with iDEX to develop a multi-sensor  processing system for Indian Air Force satellites. The exchange filing mentioned that Galaxeye signed  a deal with the company to sell its series A compulsory convertible preference shares to raise Rs 8.28  crore. 

The company will use this fresh capital to scale up operations, enhance its platform, meet general  corporate purposes, and market expansion. The company claims to develop the first multi-sensor  imaging satellite in the world to offer geospatial analysis to the government, and defense industry. This  acquisition will help Ideaforge to use the technology of the startup in developing drone-based sensors  for foilage penetrations and fog. Both companies previously signed an agreement to collaborate and  develop an aerial vehicle with foliage penetration Radar. On the Thursday session, the shares of  IdeaForge increased by 2.7 percent to Rs 816 on BSE. This acquisition will be profitable for both  companies, enabling them to integrate their technologies and bring more innovative drone solutions. 

The firm was co-founded by Ankit Mehta, Rahul Singh, Ashish Bhat, and Vipul Joshi in 2007 to  manufacture drones with UAV systems for surveillance, mapping, and inspection. IdeaForge offers  drones designed for various sectors including mining, defense, agriculture, homeland security, energy,  and others. The company recently expanded the pool size of its employee stock option plans. The  drone manufacturing startup recently got 3.27 lakh shares offloaded by VC firm Celesta Capital in a  block deal worth Rs 27.46 crore. The company plans to expand its business and enter the US market. 

IdeaForge announced a 30 percent decrease in its consolidated profit after tax to Rs 10.3 crore in the  fourth quarter of FY24 with a net loss of Rs 5.4 crore in the same duration. However, the operating  revenue increased by 12.5% QoQ to Rs 102.3 crore. This acquisition will help the company decrease  its net losses and increase profitability as the Indian space tech sector is growing rapidly. This sector  secured $233 million in funding across 30 deals from 2014 to July 2023. This acquisition will help  IdeaForge grow and incorporate GalaxEye Space solutions technology to aim for advanced drone  features.  

Conclusion: 

GalaxEye Space Solutions is a space tech startup based in Bengaluru. The company specializes in the  constellation of multi-sensor EO satellites. This startup sold its stake worth Rs 8.28 crore to a drone  manufacturing company IdeaForge. The company signed an agreement to buy series A convertible  preference shares worth Rs 8.28 crore from the startup. These two companies were already working  together to create an aerial vehicle with a foliage penetration radar system. This acquisition is  beneficial for both companies as this will allow them to scale up and merge their technologies to offer  more innovative drone solutions. IdeaForge recently expanded the ESOPs pool size for its employees.