India’s startup Airbound has raised $37 million to transform the way goods are delivered, aiming to make drone-based transportation as cost-effective as trucking. The company is innovating with a vertical take-off and landing design for its drones, which can carry payloads lighter than their own weight. With plans to create a network connecting three cities in Andhra Pradesh, Airbound seeks to revolutionise logistics by reducing delivery times and costs.

Currently operating in Bengaluru and Guntur, Airbound has completed over 13,000 autonomous flights, transporting diagnostic samples for the Indian hospital network Narayana Health. Its latest drone, TRT, weighs around 3.3 pounds with a payload of 2.2 pounds, making it lighter than its own weight.

Airbound’s ambitious goal is to operate up to 10,000 flights daily across the chosen cities, requiring between 250 and 1,000 aircraft depending on route lengths. The startup has signed an agreement with the Andhra Pradesh government to establish this network without relying on subsidies or contracts.

Despite being pre-revenue, Airbound remains focused on design and manufacturing in Bengaluru. Regulatory hurdles, particularly those related to beyond visual line of sight operations, pose significant challenges. Despite these obstacles, the company is confident that drones will one day rival trucks in cost-effectiveness.