The Rs. 185 crore growth capital investment through InCred Growth Partners Fund I and II will support VEM Technologies’ expansion, as Vivek Singla, Managing Partner and CIO, InCred Alternative Investments, and V. Venkata Raju, Founder, Chairman and Managing Director, VEM Technologies Private Limited, pointed to India’s defence manufacturing
Hyderabad, May 20, 2026: India’s defence manufacturing sector is seeing rising localisation, stronger order visibility and growing export opportunities, and InCred Alternative Investments’ Rs. 185 crore growth capital investment in VEM Technologies Private Limited comes at a time when private sector defence companies are preparing for the next phase of expansion.
The investment has been made through InCred Growth Partners Fund I and InCred Growth Partners Fund II. The transaction comprises primary growth capital and will support VEM Technologies’ capacity expansion, advanced manufacturing infrastructure and a new manufacturing facility.
Based in Hyderabad, VEM Technologies was founded in 1988 and is promoted by Mr. V. Venkata Raju and family. The company works across 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.
Vivek Singla, Managing Partner and CIO, InCred Alternative Investments, said, “India’s defence and aerospace sector presents a compelling long-term investment opportunity, supported by structural policy reforms, increasing localisation, and rising focus on indigenous manufacturing capabilities. VEM Technologies stands out for its strong technological expertise, execution track record, and strategic positioning within India’s evolving defence ecosystem. We look forward to partnering with the management team as the company scales its manufacturing capabilities and strengthens its role within India’s growing defence and aerospace landscape.”
V. Venkata Raju, Founder, Chairman and Managing Director, VEM Technologies Private Limited, said, “Over the last several years, the Indian defence sector has witnessed a meaningful shift towards indigenous design, development, and manufacturing. This investment will support us in strengthening our manufacturing infrastructure, enhancing our 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.”
InCred Growth Partners Fund is a series of private equity funds sponsored by InCred Capital Financial Services. It invests in founder led Indian businesses operating in sectors of national importance, following a concentrated portfolio approach aimed at long term value creation.
IGPF I was launched in 2023 as the platform’s maiden SEBI registered Category II AIF, while IGPF II was launched in late 2025. Across both funds, IGPF has raised around Rs. 1,500 crore and is backed by a team with more than 100 years of cumulative investment experience.
InCred Alternative Investments is part of InCred Capital, the institutional, wealth and asset management arm of InCred Group. The platform focuses on alternative investment strategies across private markets.
VEM Technologies specialises in the design, development and manufacturing of defence systems, including missiles, UAV sub systems and avionics. The company is a partner for global OEMs and India’s DRDO, delivering integrated systems across defence and aerospace requirements.
At Prittle PrattleNews, featuring you virtuously, we celebrate the commitment and innovation. Led by Editor-in-Chief Smruti Bhalerao, our platform is dedicated to sharing impactful stories that inspire change and create awareness. Follow us on LinkedIn, Instagram, and YouTube for more stories that matter.
Add Comment