Hyderabad-based defence and aerospace firm VEM Technologies has secured ₹185-crore growth capital investment from InCred Capital Financial Services arm, InCred Alternative Investments.

The investment will support the company in strengthening manufacturing infrastructure, enhancing capabilities across complex defence and aerospace systems and addressing the growing demand from both domestic and international markets. “We are pleased to partner with InCred Alternative Investments as we enter the next phase of growth and expansion,” VEM Technologies founder and CMD V. Venkata Raju said on Wednesday.

In a release announcing the investment, InCred Alternative Investments said it is investing in VEM Technologies through two of its private equity funds. The transaction comprises primary growth capital to support VEM Technologies’ expansion plans. The capital will be utilised towards capacity expansion, strengthening advanced manufacturing infrastructure and establishing a manufacturing facility to support the company’s next phase of growth and anticipated opportunities across domestic and export markets.

InCred said the investment reflects its conviction in India’s rapidly evolving defence manufacturing ecosystem, driven by increasing indigenisation, strong policy support, rising defence capital expenditure and growing export opportunities.

VEM Technologies is into system engineering, integration, design, manufacturing and quality assurance for defence, aeronautics and space systems and sub-systems. It contributes critical components and systems to strategic missile programmes, including BrahMos, Akash and Prithvi and has established itself as a key private-sector partner within India’s defence manufacturing ecosystem.

Managing partner and CIO of InCred Alternative Investments Vivek Singla said, “India’s defence and aerospace sector presents a compelling long-term investment opportunity. VEM Technologies stands out for its strong technological expertise, execution track record.”