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The drone industry is undergoing a major shift, evolving from a niche technology into a critical tool across multiple sectors, including defence, agriculture, healthcare, and logistics. Drones are driving efficiency, reducing costs, and promoting sustainability across these industries, marking a major shift towards automation and innovation. 

Recognising the vast potential of drones, Kishan Tiwari and Rimanshu Pandey founded TSAW Drones in 2019. Based in Delhi, the startup is leveraging autonomous drone technology to tackle logistics and agricultural challenges. 

The company offers on-demand parcel delivery for sectors like healthcare, ecommerce, and quick commerce, with an emphasis on transporting medical supplies, food, and other goods.

“We were trying to build a model that would make drones as accessible and ubiquitous as ride-sharing services, but for goods and logistics. We were envisioning a world where drones could be called upon for deliveries, and they would just do their job autonomously, like an Uber for goods,” Kishan Tiwari, Co-founder and CEO, TSAW Drones, tells YourStory.

TSAW offers various drone models like Maruthi, a hexa-rotor drone that carries 5–20 kg load over 40 kms. The Adarna Mini supports 2 kg payloads with an 80 km range, while the Adarna Micro handles 500 g over 40 km. The Adarna V2, with an 8 kg payload capacity and 9.5-liter volume, operates within a 20 km range, and is ideal for medical supplies.

To enhance supply chain operations, TSAW develops Level 5 autonomous drones for last-mile logistics and UAV Traffic Management systems for safe and efficient operations. It also provides agricultural drone solutions to support precision farming and optimise resource use.

Bootstrapped with an investment of around Rs 1 crore, TSAW operates with a team of approximately 35 people.

How it started?  

Kishan Tiwari and Rimanshu Pandey, alumni of NIT Allahabad, began their entrepreneurial journey by tackling real-world challenges. Tiwari, a mechanical engineer specialising in mechatronics, and Pandey, a civil engineer, collaborated on a college project that led to the creation of a unique air-and-water drone.  

“Our first project was a college assignment—a drone with morphing wings and structural batteries. It set TSAW Drones apart right from the start,” recalls Tiwari.  

Initially, TSAW Drones focused on automating drones through software that minimised human intervention. However, the COVID-19 pandemic shifted their trajectory. Partnering with Delhi Police, they deployed drones for monitoring containment zones and law enforcement during events like the Republic Day unrest and farmer protests.  

“We saw the urgent need for remote surveillance and delivery of medical supplies during the pandemic,” says Tiwari. This experience established TSAW Drones in emergency services and paved the way for their venture into healthcare logistics.  

The pivot  

TSAW Drones’ early focus was on Visual Line of Sight (VLOS) drones, where the operator keeps the drone in sight. But the introduction of new DGCA regulations, including Beyond Visual Line of Sight (BVLOS) that refers to UAV/drone operation where the vehicle must remain physically seen by the operator, unlocked possibilities for long-range deliveries. 

“We recognised BVLOS as the key to revolutionising drone logistics,” explains Tiwari. TSAW Drones showcased its potential in the Telangana government’s ‘Medicine from the Sky’ project, delivering COVID-19 vaccines to remote areas.  

This marked their entry into logistics, collaborating with partners like Blue Dart and Dunzo for healthcare delivery projects, cementing their role in the sector.  

Building a full-service drone ecosystem

By 2021, TSAW Drones transitioned from a drone technology provider to a full-service logistics ecosystem, encompassing drone manufacturing, software development, and end-to-end logistics management. 

“We’ve built an entire ecosystem around drone operations,” says Tiwari. “We don’t just build drones—we manage the entire process, from manufacturing to delivery. Our aim is to be the go-to solution for logistics, especially in the healthcare, e-commerce, and rural supply chain sectors.”

The startup operates drones on A-to-B delivery routes, such as transporting medical supplies between hubs and distribution points in Hyderabad. Using a per-kilometer, per-sample charge model, TSAW has significantly reduced operational costs over time. 

It also develops avionics systems to enhance flight safety and operational efficiency, integrating AI and machine learning into solutions for managing flight operations, logistics networks, and drone hubs, improving route planning, decision-making, and predictive maintenance.

TSAW drones can carry payloads of up to 100 kg and fly as high as 15,000 feet. Preparing for rapid expansion, the company aims to deploy 100 drones within the next 8–12 months. 

To date, it has served seven clients, delivered 43,256 packages, completed 293.8 flight hours, and covered 25,045 kilometers.

Revenue model

TSAW Drones operates on a dual revenue model, earning from parcel delivery services and software solutions. Parcel delivery revenue depends on distance and shipment weight, while software income comes from licensing and subscriptions for specialised tools that automate and optimise drone operations, including advanced flight management, real-time analytics, and fleet management.

Operating costs dropped significantly from Rs 45 per kilogram per kilometer in 2020 to Rs 3–4 by 2023, with ongoing R&D targeting costs below Rs 1. 

“This is a huge milestone, not just in terms of cost but also in making drone delivery environmentally sustainable. Drone delivery is more cost-effective and greener than traditional transportation, making it a win-win for the industry and the planet,” says Tiwari.

Currently active in Hyderabad, Telangana, Karnataka, and Himachal Pradesh, TSAW has secured new route tenders in Lucknow, Kanpur, and Noida-Chandigarh. Competing with players like Zipline, the company has faced challenges, including high prototype costs of Rs 18 lakh per unit, R&D expenses, supply chain delays, and difficulties in finding testing locations. 

“The journey hasn’t been easy, but every challenge has been a stepping stone toward innovation. From supply chain delays to regulatory hurdles, we’ve learned and evolved with each experience,” adds Tiwari.

The road ahead

The India Commercial Drone Market is projected to grow at a CAGR of 14.2% from 2024 to 2033, with a valuation of $374.7 million in 2024 and $1,237.8 million by 2033, according to Custom Market Insights.

TSAW Drones has raised Rs 5 crore till date in two rounds and is backed by We Founder Circle, Qubit Capital, and Chandigarh Angel Network. It is in talks for additional investment to further accelerate its expansion plans.

The startup plans to expand its drone hub network in the next three years, deploying more interconnected hubs for seamless operations, last-mile delivery, and efficient inter-hub logistics, crucial for managing larger cargo volumes and increasing operational reach.

“The logistics space offers immense potential for drones in the next five to six years. These hubs with interconnected corridors enable efficient drone takeoff, landing, and cargo movement, revolutionising last-mile delivery and inter-hub logistics to create scalable, efficient supply chains,” Tiwari says. 

TSAW Drones was part of TechSparks 2024, YourStory’s flagship tech startup event held recently in Bengaluru, and made it to YourStory’s Tech30 list, as one of the 30 most promising Indian startups of 2024.