The largest Indian drone-maker company has achieved remarkable success with an Rs.550 crore IPO on the 26th of June. IdeaForge’s IPO has become a hot topic for discussion. Why? Because it is the first indigenous drone manufacturing company that reached this massive height of success. All thanks to the Ideaforge business model that led to the outstanding achievement. Are you curious to know its details? If yes, then stick to this write-up!
Ideaforge: A Brief Overview
Drones are the latest and most anticipated form of UAVs (Unmanned Aerial Vehicles). They revolutionize industries with unmatched versatility, reaching inaccessible heights, monitoring wildlife, or delivering life-saving aid to remote regions. Through their watchful eyes, drones enhance defense military operations, and disaster response. Also, they empower innovative filmmaking and safeguard endangered ecosystems.
India used to import drones mainly from the US and Israel. But with sky-high prices! Ankit Mehta, Rahul Singh, and Ashish Bhat recognized this loophole as a golden opportunity. Thus, they established “Ideaforge,” a company specializing in drone manufacturing.
Before diving deep into the Ideaforge business model, let’s have a brief overview of the company-
|Company’s Name||Ideaforge Technology Limited|
|Type of Industry||Drone Manufacturing Company (Unmanned Aircraft Systems Industry)|
|Founders||Ankit Mehta (CEO), Rahul Singh, and Ashish Bhat|
|Headquarters||Mumbai (Maharashtra, India)|
|Operating Space||D2C (Direct to Customer)|
|Market Valuation (FY22)||Rs.1,426 crores ($174 million)|
|Revenue (FY22)||Rs.186 crore|
|Expenses (FY22)||Rs.155.6 crore|
|Net Profit/Loss (FY22)||Profit of Rs.32 crore|
|Competitors||Urban Matrix, PixelVision Technology, Big Bang Boom Solutions, Skylark Drones, etc.|
Next section onwards, you will get to know about the “Ideaforge Business model” in detail.
Working Strategy: How Does Ideaforge Work?
Ideaforge is an Indian company that specializes in the development and manufacturing of unmanned aerial vehicles (UAVs), commonly known as drones. Being a D2C company, its prime working strategy is to manufacture drones and sell them through various platforms. Now, let’s look at the working strategy of Ideaforge business model in detail-
1. Manufacturing of Drones
Ideaforge manufactures the following types of drones-
|Switch UAV||Advanced flight time, |
Suitable for security operations.
|Netra V4 UAV||Intelligent, |
search & rescue,
|Ninja UAV||Security surveillance, |
day & night swappable payloads.
|Q4i UAV||Economically feasible, |
security & surveillance,
|Ryno UAV||Mapping service, |
mining area planning,
|Q6 UAV||Quadcopter design, |
high area coverage,
2. Services & Solutions
In addition to selling drones, Ideaforge offer various services and solutions to cater to specific customer needs. It includes-
- Training programs for drone operators
- Consulting services for drone applications in different industries
- Providing custom solutions tailored to specific requirements
3. Maintenance & Support
As you know, drones require regular maintenance, repairs, and software updates. That’s why Ideaforge offers maintenance and support services, either on a subscription basis or as one-time service contracts. Thus, it ensures the optimal functioning of its customer’s drones. Also, it offers proprietary software solutions. This service enhances the capabilities of its drones or enables data processing and analysis. This includes flight planning software, data analytics platforms, or specialized software for specific industries like agriculture or surveying.
4. Research & Development
This is the most significant part of the Ideaforge business model’s working strategy. As the drone industry evolves rapidly, investing in research and development is essential to stay competitive. Ideaforge allocates resources to R&D efforts for achieving the following objectives-
- Enhance the product offerings
- Explore new applications
- Development of cutting-edge technologies
5. Partnerships & Collaborations
As you know, collaborating with other organizations is a crucial part of an Ideaforge business model. This involves partnering with sensor manufacturers, software developers, or industry-specific companies. Here, the aim is to integrate their technologies into the drone systems or develop joint solutions. Some of the partnered companies of Ideaforge are-
- Esri India
- Savex Technologies
- PV Lumens
Revenue Sources: How Does Ideaforge Make Money?
As per the co-founder, Ankit Mehta, 70% of the firm’s revenue was obtained from the defense sector. The remaining 30% of revenue was generated from the civil sector such as police forces and other governmental agencies. Here, a notable point is that the government is the main customer of Ideaforge. In the fiscal year 2022, Ideaforge earned revenue of Rs.186 crore. Also, it was quite profitable i.e. a profit of Rs.32 crore. The majority of its expenses include raw materials and research & innovation.
Crucial revenue sources of Ideaforge
- Drone Sales: The primary source of revenue for Ideaforge business model is through the sale of their drones to various customers. The customer segment includes government agencies, defense forces, law enforcement, and private companies.
- Customized Services: It offers customized solutions to its clients who need specific requirements. It includes modification of existing drone models or developing new UAVs tailored to the client’s or customer’s needs. It includes rentals as well.
- Research and Development contracts: Ideaforge collaborates with government or private entities to develop specialized UAV technology for specific applications under research and development contracts.
- Training & Support: Providing training to operators and maintenance support for the drones they sell is an additional revenue stream for many UAV companies.
- Data & Services: It offers services such as data analytics, surveying, mapping, surveillance, and monitoring of its drones. The company may charge clients for these additional services.
Why did the Ideaforge IPO become such a huge success?
The IPO of the drone manufacturing company “Ideaforge” was a huge success. Because it received a very strong response from retail and other category investors. The IPO was worth Rs.567 crore.
Do you know what the surprising fact was in the Ideaforge IPO? On the first day of bidding, its IPO was subscribed 1.28 times. While its retail portion was subscribed 5.11 times. These subscriptions surpassed the anticipated numbers. The warm response by the investors was a green flag that incited positive outcomes of Ideaforge’s IPO. Being the first player in the drone manufacturing industry, Ideaforge gained notable success.
Final Words: Future Scope of IdeaForge Business
Seeing the applauding success of Ideaforge IPO, the company is planning to put a large focus on research, development, and innovation. Apart from that, the company is expected to use the funds collected from the IPO to-
- Repay the debts
- Funding the working capital requirements
- Paying for the corporate requirements
- Fund the daily operations
- Develop new products
Thus, they expanded their investor base to collect more funds. This will successfully help to elevate Ideaforge business model and to compete with other manufacturers of drones.