The investment comes amid increasing localisation and higher capital expenditure in India’s defence manufacturing sector, supported by government policy initiatives and rising export opportunities
InCred Alternative Investments, the alternative investment arm of InCred Capital Financial Services has invested ₹185 crore in Hyderabad-based defence and aerospace company VEM Technologies Private Ltd through its private equity funds — InCred Growth Partners Fund-I (IGPF-I) and InCred Growth Partners Fund-II (IGPF-II).The transaction involves primary growth capital and will support VEM Technologies’ expansion plans, including capacity addition, strengthening manufacturing infrastructure and setting up a new manufacturing facility.Founded in 1988 by V Venkata Raju and family, VEM Technologies operates in the defence and aerospace segment with capabilities spanning system engineering, integration, design, manufacturing and quality assurance for defence, aeronautics and space systems. The company supplies components and systems for missile programmes such as BrahMos, Akash and Prithvi.The investment comes amid increasing localisation and higher capital expenditure in India’s defence manufacturing sector, supported by government policy initiatives and rising export opportunities.Vivek Singla, Managing Partner and CIO, InCred Alternative Investments, said India’s defence and aerospace sector offers a “compelling long-term investment opportunity” backed by structural policy reforms and growing focus on indigenous manufacturing.“VEM Technologies stands out for its strong technological expertise, execution track record, and strategic positioning within India’s evolving defence ecosystem,” he said.V Venkata Raju, Founder, Chairman and Managing Director, VEM Technologies Private Ltd, said the investment would help the company strengthen manufacturing infrastructure and expand capabilities across complex defence and aerospace systems to meet growing domestic and international demand.Published on May 20, 2026
