European defence technology company TEKEVER is entering a new phase of expansion after securing the first close of a $580 million Series D financing, giving the Portuguese founded company a valuation of $6.4 billion. The investment comes as demand grows for autonomous systems capable of collecting, processing and delivering intelligence in real time across defence, security and civilian missions.
Major Series D round
The financing was led by UC Investments and Baillie Gifford. The round also includes new strategic investor Merlyn Advisors, alongside continued backing from existing shareholders Crescent Cove, Ventura Capital and Iberis Capital.
The first close represents the majority of the planned Series D financing, with TEKEVER expecting additional closings in the coming months as it brings more strategic investors into the round. The company said the capital will support its next stage of growth, international expansion, technological development and strategic acquisitions.
The investment also marks UC Investments’ first direct investment in Europe, adding a major institutional investor to TEKEVER’s shareholder base.
More than a drone maker
TEKEVER’s business extends beyond the manufacture of unmanned aircraft. The company develops autonomous aerial systems alongside the sensors, communications, artificial intelligence and software required to turn data collected in the field into usable intelligence.
Its systems are designed for missions including intelligence, surveillance and reconnaissance, maritime monitoring, border security and search and rescue.
The company’s AR family includes the AR3 and the larger AR5 platform. The AR5 is designed for persistent, long endurance missions and can carry surveillance payloads while providing real time information to operators.
This vertically integrated approach allows TEKEVER to develop aircraft and the surrounding digital infrastructure as one system, rather than treating the drone as an isolated product.
Major UK defence programme
The funding announcement follows a series of significant developments for TEKEVER in the UK. In August, the company was selected by the UK Ministry of Defence to deliver CORVUS, the British Army’s new surveillance capability.
The programme is worth up to £400 million over ten years and is based on TEKEVER’s AR5 system. The platform is intended to provide persistent, long range intelligence, surveillance and reconnaissance for British forces.
The programme is also linked to TEKEVER’s wider UK industrial strategy. Manufacturing of the AR5 will be centred at the company’s Swindon facility, while engineering, training and operational activities are being developed across its UK footprint.
Expanding European capabilities
TEKEVER has been investing heavily in its European industrial and technological presence. Its five year OVERMATCH programme involves more than £400 million of planned investment in UK research, infrastructure and defence technology and is expected to create more than 1,000 highly skilled jobs.
The company has also expanded its autonomous systems portfolio through acquisitions. In September, TEKEVER acquired Edinburgh based Flowcopter, adding its hydraulic transmission technology for aerospace propulsion to the group’s capabilities.
Scaling AI and autonomy
Founder and CEO Ricardo Mendes said the latest financing provides resources to move faster, expand further and continue building a technology company from Europe.
The company’s strategy is centred on combining artificial intelligence with autonomous systems that can operate in demanding environments while continuously incorporating new technologies and operational learning.
TEKEVER will use the Series D capital to increase its international presence, expand industrial and technological capabilities, accelerate acquisitions and develop its autonomous systems business.
With the new funding and a growing pipeline of defence programmes, TEKEVER is positioning itself as a major European player in AI powered autonomous technology, with applications spanning defence, security and civilian surveillance.
