IAN Alpha Fund Invests ₹25 Crore in D-Propulse Aerospace
New Delhi, 28th Jan’26: IAN Alpha Fund, the 2nd in the series of IAN Group’s VC fund, has invested ₹25 crores in D-Propulse Aerospace Private Limited to support the development of next-generation aerospace propulsion systems. The investment reflects IAN Group’s commitment to support deep-tech startups aligned to India’s strategic imperatives. D-Propulse’s advanced propulsion technologies bring critical innovation to India’s long-term defence strength and industrial resilience.
D-Propulse is building indigenous Rotating Detonation Engine (RDE) based propulsion systems that fundamentally change how high-speed platforms are designed, manufactured, and deployed. Unlike conventional jet engines, RDEs have no moving parts. In fact, they are mechanically simpler, easier to manufacture, and more reliable at scale than even traditional ramjets and scramjets. They also deliver 25% or higher thermal efficiency gains, enabling smaller engines to deliver higher performance.
This combination brings down system costs significantly. By offering performance comparable to today’s high-speed weapons at a fraction of the cost, the company seeks to enable “mass in precision”, the ability to deploy fast, accurate systems at scale.
Founded in July 2025, D-Propulse was created to address a long-standing weakness in India’s defence ecosystem: advanced aero-propulsion. As integrated air and missile defence systems mature globally, traditional radar stealth is losing effectiveness. In the unipolar world of today, there is a need for countries to shift to build self-dependence in critical areas of defence and adoption of high-supersonic and hypersonic platforms is one such need., Existing propulsion technologies make the systems large, expensive, and difficult to scale which is the problem that D-Propulse is targeting to solve for in both defence and industry.
The company is led by an experienced team with strategic insights drawn from India’s defence and research ecosystem. Dr V.K. Saraswat, Member, NITI Aayog and former Chairman of DRDO, serves as Chief Mentor. Founder and CEO Saurav Jha is a defence expert who advises the Indian government and leading Indian companies on strategic technology issues. Co-founder and CTO Dr V. Ramanujachari, a former senior DRDO scientist, led India’s scramjet engine programme and played a key role in the propulsion system used in the Akash missile. Prof. S. Chakravarthy, Head of NCCRD at IIT Madras, is Chief Advisor.
This depth of experience translates directly into execution on the ground. D-Propulse has already achieved a significant technology readiness level in air-breathing rotating detonation combustors and is progressing to flight-capable versions for technology demonstration.
Saurav Jha, Founder & CEO, D-propulse Aerospace, said, “We have entered an era where speed is the new stealth. Defence budgets across the major power centres of the world are pivoting in recognition of this new reality. Our vision is to ensure that India is fully equipped to not merely navigate but potentially dominate this emerging era of high-supersonic and hypersonic systems and platforms. Towards that end, we are progressing indigenous air-breathing rotating detonation engine technology and also building bespoke systems around it. Our plans are not limited to developing RDE-powered effectors but extend to the creation of high-supersonic drones as well.”
Rajnish Kapur, Managing Partner, IAN Alpha Fund, said, “Propulsion is the hardest and most capital-intensive problem in high-speed aerospace systems, and it has historically been the limiting factor for scale. What excites us, at IAN, about D-Propulse is not just the choice of Rotating Detonation technology, but the way it fundamentally changes system economics, simpler engines, higher efficiency, and dramatically lower costs. Affordability is the real unlock if India is to move from a few exquisite platforms to true scale. We see D-Propulse’s team that understands both the physics and the strategic context, and are delighted to back them as a long-term partner in building this for India.”
The seed capital from IAN Alpha Fund will be used to expand the engineering team, strengthen computing and simulation capabilities, and set up limited testing infrastructure. The company is also integrating AI into both operations and technical development to accelerate design and validation cycles. Initial engagements with the Indian military are underway, with export markets to be addressed in close consultation with the government at a later stage.
Globally, rotating detonation combustion is emerging as a general-purpose technology with applications across propulsion, rockets, gas turbines, and power generation, representing a potential $100 billion market by 2035. While India currently has limited activity in this space, global interest is accelerating, creating a timely opportunity for indigenous leadership.
With this investment, IAN Alpha Fund reinforces its role as a conviction-driven investor in deep technology, backing teams that combine scientific depth, execution capability, and a clear understanding of how technology shapes strategic needs to deliver high ROIs.
About D-Propulse Aerospace:
Deeppropulse Aerospace Private Limited is an Indian aerospace startup focused on developing next-generation high-speed propulsion systems for defence and civilian applications. The company is working on proprietary rotating detonation engine (RDE) technology, which has the potential to significantly improve propulsion efficiency and performance in advanced aerospace platforms. Through its innovation-led approach, D-Propulse aims to support the development of faster, more efficient, and mission-ready aerospace solutions for the future.
About IAN Group:
IAN Group is India’s largest horizontal platform for early-stage investments, comprising the IAN Angel Fund, BioAngels, and a series of SEBI-registered Venture Capital Funds, the latest being a US$100mn VC Fund, IAN Alpha Fund. IAN enables entrepreneurs to raise from Rs. 50 lakhs to Rs. 50 crores, supported by high-quality mentoring by successful entrepreneurs, enabling access to global markets. IAN Group backs founders across domains and helps them scale their companies across India and beyond. Forbes has recognised IAN as one of the most iconic business and economic developments of Independent India over the last 75 years, alongside institutions such as LIC, NASSCOM, the RBI, and Naukri.com.