How Two Indian Startups Made History with IDBI Capital's Backing

In a space that’s often dominated by legacy giants and international players, two Indian startups have not only held their ground—they’ve soared. And now, as IDBI Capital Markets & Securities Limited (ICMS) announces its successful exits from Sagar Defence Engineering Pvt. Ltd. and Zeus Numerix Pvt. Ltd., it's a moment of celebration for India’s growing startup ecosystem, especially those daring to innovate in the most complex, strategic, and high-stakes sectors of all—defence and aerospace.

Backing Bharat: The Vision Behind MDAVF

The exits come under the Maharashtra Defence and Aerospace Venture Fund (MDAVF), a ₹415 crore fund managed by ICMS, a wholly owned subsidiary of IDBI Bank. This SEBI-registered Category II Alternative Investment Fund was launched in 2018 with a bold mission: to back Made-in-India innovations in the defence and aerospace sectors, and to catalyze the Atmanirbhar Bharat dream into tangible outcomes.

With 23 MSMEs already part of its portfolio, MDAVF is proving that strategic funding and targeted support can unlock enormous value from homegrown enterprises.

Who Are the Stars of This Strategic Exit?

Let’s break it down—because these two startups are not just names on a balance sheet. They are examples of the deep-tech revolution that’s brewing quietly but powerfully across India.

Sagar Defence Engineering Pvt. Ltd.: Navigating the Future of Autonomous Marine Tech

Imagine a robot gliding through rough ocean waters, collecting real-time data, communicating with command centers, and helping secure India’s coastline. That’s what Sagar Defence Engineering has built with its Unmanned Marine Surface Vehicle (UMSV).

This autonomous oceanic marvel is a game-changer in marine surveillance and oceanography. From defence missions to disaster management, its potential applications are vast—and vital. With IDBI Capital’s support, Sagar Defence has gone from vision to validation, and now, to a powerful exit, demonstrating not just capability but scalability.

Zeus Numerix Pvt. Ltd.: Simulating Success, Powering Precision

Then there’s Zeus Numerix, a name that's synonymous with advanced engineering simulation in India. Born out of the Department of Aerospace Engineering at IIT Bombay and nurtured by SINE (Society for Innovation and Entrepreneurship), Zeus has built a formidable reputation as a trusted technology partner to DRDO, ISRO, and BARC.

What does Zeus do? In short, they solve some of the most complex engineering puzzles through Computational Fluid Dynamics (CFD), Finite Element Analysis (FEA), and Multiphysics Modelling. Their work enables the development of precision-guided munitions, hypersonic vehicles, and aerospace systems that are critical to India’s strategic interests.

In a sector where innovation cycles are long and risks are high, Zeus Numerix stands as proof that Indian startups can lead on the global tech frontier.

Why These Exits Matter: More Than Just Returns

Sure, successful exits are a financial win. But in this case, they signify something much deeper.

These exits—secured with strong Internal Rates of Return (IRRs)—validate the investment thesis that Indian deep-tech defence startups are not just viable, but investable and scalable. They also demonstrate that patient, strategic capital can create not only returns, but national capabilities.

As Amey Belorkar, Senior Vice President at ICMS, puts it:

“MDAVF and ICMS are proud to have been part of the growth and success of Sagar Defence Engineering and Zeus Numerix. These ventures represent the future of Indian defence capabilities and embody the vision of Atmanirbhar Bharat. Our fund remains committed to supporting high-potential ventures that redefine the country’s strategic technological edge.”

The Broader Impact: Building India’s Defence Startup Ecosystem

This milestone reflects a significant cultural shift—where defence innovation is no longer the exclusive domain of public-sector units or global defence majors.

The MDAVF model shows how government-backed venture capital can de-risk innovation and fuel strategic industries. It also sets a precedent for state-level, sector-specific funds to drive change where it matters most.

For startups looking to enter this space, the message is clear: if your tech is strong, your vision is aligned with national priorities, and you have the grit to build in a high-barrier industry—there is support out there.

As MDAVF scouts for its next wave of innovators, the spotlight is now on new-age entrepreneurs ready to transform aerospace, defence electronics, drone tech, space systems, and more.

With rising geopolitical challenges, growing domestic demand, and strong government push for indigenization, India’s defence-tech sector is no longer a niche—it’s a necessity.

And if stories like Sagar Defence and Zeus Numerix are anything to go by, the future of Indian defence is not just secure—it’s being built in India, by Indians, for India.