This funding round also saw participation from other investors including 9Unicorns, the Rajiv Dadlani Group, and Venture Catalysts, indicating a growing interest in the deep-tech sector.

The startup has secured four patents and has gained recognition for its innovation by winning multiple government-backed iDEX challenges, including the Acing Development of Innovative Technologies with iDEX (Aditi) award.

Sandeep Shah, the founder and managing director, highlighted the importance of building indigenous capabilities and the confidence investors have in the company's vision to enhance technological capabilities and contribute to India's security objectives.

The company has previously raised a total of Rs 39 crore (over $4.5 million) in external funding, reflecting a trend of Indian startups developing indigenous technologies in line with the government's self-reliance initiative.

Shah emphasized the critical role of AI-based imaging solutions in modern warfare, enabling faster and smarter decision-making for defense and security.

Optimized Electrotech aims to assist various sectors, including government and defense, in effectively responding to threats such as unauthorized drone incursions.

Optimized Electrotech, a deep-tech startup based in Ahmedabad, has successfully raised $6 million in a Series A funding round co-led by Blume Ventures and Mela Ventures, as announced on April 14, 2025.

Arpit Agarwal from Blume Ventures expressed enthusiasm about the company's innovative contributions to defense and deep-tech, aligning with India's self-reliance goals.

Founded in 2017 by Sandeep Shah and Dharin Shah, Optimized Electrotech specializes in AI-powered electro-optic imaging systems for defense, space, border security, and aerospace applications.

Agarwal emphasized that this investment reflects strong confidence in Optimized Electrotech's potential to lead technological advancements in the defense and space sectors.

Despite securing this funding, the company reported a revenue decline from INR 4.4 crore in FY24 to INR 3 crore for the year ending March 31, 2025, with losses increasing from INR 5.7 crore to INR 8 crore during the same period.

The new capital will be allocated to develop next-generation AI imaging payloads and high-speed space-based surveillance solutions, as well as to expand into international markets, particularly Africa.