i-Manu Script - a99's Monthly Infrastructure & Manufacturing Newsletter
i - Manu Script – Script #2, June 2025
The i–Manu Script is our lens on industrial transformation in India and beyond. With India at the center and a global perspective in view, we bring sharp insights on deals, policy shifts, international movements, acquisitions, and the innovations shaping this change.
Each of our scripts will bring you both a global and Indian perspective through:
A Birds Eye view on Macro shifts and strategic signals from large industrial players
A curated roundup of funding activity in core and adjacent manufacturing sectors
What we are reading and Listening to
Editorial Note
What a year it has been already, and we are only halfway through. The government’s focus on strengthening India’s industrial backbone has become increasingly evident. The 2025–26 Union Budget saw defence spending rise by 9.5% from ₹6.22 lakh crore to ₹6.81 lakh crore, and the announcement of a ₹10,000 crore deep tech fund marked a major push toward emerging technologies such as AI, quantum computing, and semiconductors.
Public markets have shown signs of stability, with the NIFTY hovering around the 25,000 mark, helping restore investor confidence. On the trade front, India recorded a $13.5 billion current account surplus, supported by healthy exports of engineering goods and machinery. FDI into the manufacturing sector also grew by
8% year-over-year in the first half of the year.
One of the most defining developments this year was Operation Sindoor, which highlighted India’s growing self-reliance in defence and the progress of its indigenous capabilities.
Meanwhile, US tariffs sent the entire world into a frenzy, creating both disruption and opportunity as global supply chains recalibrate. In this environment, India's manufacturing story becomes even more compelling as it becomes an active participant in shaping the next phase of global industry.
India Macros & Strategic Signals
Manufacturing PMI hits 13-month high at 58.4 in June 2025, driven by robust export demand and fastest employment growth on record, with new orders surging across Africa, Asia, Europe, and the Americas as global supply chains continue shifting toward India. (Link)
Defence import dependency drops from 11% to 4% over 14 years as domestic manufacturing scales, with India moving from world's largest defence importer to fourth position while defence exports grew from ₹15.2 billion in 2017 to ₹236 billion in 2023–24, recording a 41% CAGR. (Link)
Indian Army secures ₹295 Cr contracts for advanced loitering munitions and drones, expanding indigenous kamikaze drone capabilities alongside the ₹1,981 Cr emergency procurement for 13 priority contracts including counter terrorism equipment and air defence systems. (Link)
Reliance Defence bags ₹600 Cr export order from Germany's Rheinmetall for high tech ammunition manufacturing, marking one of the largest private sector defence export deals and positioning India as a reliable European defence supplier. (Link)
Kaynes commits to adopt India made semiconductors and bare board PCBs by 2025-end, targeting cost efficient legacy nodes for automotive, industrial applications, and consumer electronics. (Link)
Vedanta Aluminium secures breakthrough patent for recovering >99% purity battery grade graphite from aluminium production waste, potentially reducing India's 70% graphite import dependency worth $41M annually while supporting the EV battery supply chain. (Link)
Hindalco acquires AluChem for $125M, marking its third US acquisition after Novelis and Aleris, expanding specialty alumina capacity to serve semiconductors, EVs, and precision ceramics as global demand surges for high tech materials. (Link)
Non-fossil fuel sources now account for 235.7 GW, or 49% of India’s total power generation capacity. This includes 226.9 GW from renewables and 8.8 GW from nuclear energy, reflecting the country’s accelerating shift toward cleaner power. (Link)
India Deal Roundup: Startups in Motion
Raphe mPhibr - $100M (Series B)
Led by General Catalyst, Think Investments, Amal Parikh
Defense drone manufacturer operating across nine UAV models from lightweight surveillance drones to heavy lift logistics platforms. Produces flight controllers, batteries, carbon fiber composites, and military-grade electronics domestically at 650,000 sq ft facility. (Link)
Fabheads - $10M (Series A)
Led by Accel, with Trifecta Capital participation
Automates composite fiber manufacturing through proprietary technology for carbon fiber placement and layering. Serves aerospace, defence, mobility, and clean energy sectors. Their technology enables manufacturers to produce high performance composite parts with precision engineering, targeting both domestic and international aerospace markets. (Link)
Kazam - $6.2M (Series B)
Led by IFC, existing investors Vertex Ventures SEA & India, Avaana Capital
Provides device agnostic digital infrastructure platform for EV charging and battery-swapping operators, vehicle OEMs, fleets, and power utilities. Software manages and analyses charging assets across different hardware vendors, enabling seamless EV charging experiences. (Link)
Fantail - ₹13.75 Cr (~$1.6M Seed)
Led by Riverwalk Holdings, Incubate Fund Asia, All In Capital
Fantail is a B2B textile manufacturer in the MMF space, producing nylon, viscose, and polyester fabrics by partnering directly with weavers, mills and processors in Surat. It brings structure, technology, and scale to India’s fragmented man-made fiber sector. (Link)
Knest - ₹300 Cr (~$35M Strategic)
Led by Lighthouse Funds
Manufactures custom aluminium formwork systems and patented hydraulic safety screens for construction industry. Aluminium formwork enables faster construction cycles (3x quicker than traditional methods) while improving finish quality and reducing labor intensity. (Link)
Sthyr Energy - $1M (Seed)
Led by Speciale Invest, Antares Ventures
Develops mechanically rechargeable zinc-air battery systems that decouple energy and power components, enabling flexible and modular deployments. The technology stores excess renewable energy as metallic zinc, making it suitable for long duration and seasonal storage. Building 200 kWh battery systems and 10 kW zinc regeneration units using water-based, non-flammable electrolytes. (Link)
Frinks AI - $5.4M (Pre-Series A)
Led by Prime Ventures , Chiratae Ventures
Frinks AI is building a no code vision AI platform that allows manufacturers to automate visual inspection and quality control without technical expertise. The platform uses generative AI to convert text prompts into sensor-rich, 3D digital environments tailored to real world factory conditions, enabling faster deployment of deep tech visual inspection solutions across industries. (Link)
Leumas - $2.2M (Seed)
Led by Capital 2B, Capital-A, Anicut Capital
Offers on-demand manufacturing and factory-as-a-service solutions for wellness and pharma brands. Its software driven, modular robot factories combine AI led robotics, vision systems, and automation to enable fast, compliant, and scalable production. (Link)
Global Deal Roundup: Manufacturing, DeepTech & Industrial Innovation
Nuclear / Fusion
TerraPower (Bellevue, Washington, USA) — $650M Strategic
Led by NVIDIA's NVentures, Bill Gates, SK Group, Khosla Ventures, GE Hitachi Nuclear Energy
Nuclear startup founded by Bill Gates is building America's first commercial Natrium reactor in Wyoming, featuring a 345MW sodium cooled design that stores excess heat in molten sodium tanks for later electricity generation. Storage system can boost output to 500MW for over five hours, helping balance intermittent solar and wind power on the grid. Reactor construction began in 2024 with regulatory approval expected in 2026. Technology addresses rising AI and data center power demands while providing grid scale energy storage capabilities. (Link)
Radiant Industries (USA) — $165M Series C
Led by DCVC
Designing Kaleidos, a 1MW portable nuclear microreactor that fits in a shipping container using TRISO fuel for military bases, remote sites, and data centers. Planning testing at Idaho National Laboratory's DOME facility in 2026, with factory capacity to produce 50 microreactors annually to replace diesel generators. (Link)
Proxima Fusion (Munich, Germany) — €130M Series A
Led by Cherry Capital
Proxima Fusion was founded in April 2023 as a spin-out from the Max Planck Institute for Plasma Physics. The company uses powerful computer simulations and advanced magnet technology to develop fusion energy. Building on decades of research, Proxima aims to create a fusion system that can run continuously and produce clean, limitless power. (Link)
Space Technology & Defence
Impulse Space (USA) - $300M Series C
Led by Linse Capital
Developing space vehicles that transport satellites between orbits, including the Helios system for moving payloads from LEO to GEO and lunar trajectories, and the Mira vehicle for precise satellite positioning and rendezvous operations. Technology enables rapid transportation across orbital destinations for commercial, defence, and civil missions. Company has over 30 signed contracts worth nearly $200 million. Founded by SpaceX founding member Tom Mueller, architect of the Merlin engine family (Link)
Mach Industries (Austin, Texas, USA) - $100M Series A
Led by Khosla Ventures
Mach Industries is a U.S. defence technology startup founded by 19-year-old MIT dropout, developing three weapons systems: Viper, a jet-powered vertical takeoff UAV requiring no runway; Glide, a high-altitude atmospheric glider for long-range strikes; and Stratos, an extreme-altitude sensor and communications satellite. Mach was selected by the Army Applications Laboratory to develop a vertical takeoff precision cruise missile. (Link)
Energy Infrastructure & Climate Tech
Heron Power (Califirnia, USA) - $38M Series A
Led by Capricorn Investment Group's Technology Impact Fund
Developing the Heron Link, a solid-state transformer that replaces century-old medium-voltage transformers currently built with 10 tons of steel and copper submerged in oil. The modular power converter uses wide-bandgap semiconductors to connect renewable energy and data centers directly to medium voltage without traditional transformers. Addresses critical grid bottlenecks where transformer lead times stretch 24 months. (Link)
Grid Care (USA) - $13.5M Seed
Led by Xora
Grid care maps existing grid infrastructure and using generative AI to identify hidden capacity that can connect data centers faster than traditional 5-year utility timelines. Platform analyzes 200,000+ scenarios including fiber connectivity, natural gas, water availability, and regulatory constraints to match hyperscalers with untapped grid locations. Technology can unlock over 100 GW of data center capacity through optimized grid connections. (Link)
Hymeth (Copenhagen, Denmark) - $3.7M Series A
VSquared Ventures, The Footprint Firm
Hymeth, a Danish company, is developing patented alkaline electrolysis platform that achieves 84% efficiency for green hydrogen production without rare or costly materials. Platform designed to replace fossil fuels in industrial sectors and provide secure energy supply for critical infrastructure nodes. (Link)
What We’re Reading & Listening To
China's Evolving Industrial Policy for AI • RAND Corporation
Analysis of China's strategy to become global AI leader by 2030, leveraging AI to upgrade manufacturing, robotics, and hard tech sectors with $100B+ industry targets
Link to the article: Here
All You Need to Know About Ports • The Daily Brief by Zerodha
Deep dive into how India's port infrastructure works and why it's critical to the country's economic growth and trade competitiveness
Link to the article: Here
Tariffs, Technology, and the New Geography of Manufacturing • Harvard Business Review
Examination of how geopolitical disruptions and technological advances are simultaneously reshaping global manufacturing footprints and strategic decision-making
Link to the article: Here
Inside the BEL-Tata Partnership: India's Path to Defence Chip Independence • Motilal Oswal
Deep dive into how India's 99% dependence on foreign defence chips, including from China, could be transformed by the strategic BEL-Tata semiconductor partnership
Link to the article: Here
Inside India's Rare Earth Magnet Emergency and How EV Makers Are Coping • Daybreak Podcast
Analysis of China's rare earth export restrictions creating critical supply shortages for Indian EV manufacturers, forcing production cuts at Maruti while others scramble for alternatives
Link to the podcast: Here
Question of the Month (Trivia)
Which company is officially the world's largest tire manufacturer by volume, producing over 300 million tires annually?
A) Michelin
B) Bridgestone
C) LEGO
D) Goodyear
Please wait for the next edition of the newsletter to know the answer!
Closing Thoughts
India's manufacturing sector is delivering on multiple fronts. Record PMI readings, breakthrough defence exports, and major industrial deals signals; We've moved past the inflection point.
The companies executing well today are positioning themselves for the next wave of growth. We’ll keep tracking the trends and sharing what we’re seeing. Until next time, build boldly.
We’d love to hear your feedback and thoughts on the newsletter. If you’d like to connect or discuss anything further, feel free to reach out to us at pitch@artha99.vc or khushi@artha99.vc