Destinus, a drone company founded by a former Russian national that supplies weapons to Ukraine, is in talks to raise funds that would value the firm at as much as €1.5 billion ($1.7 billion), according to people familiar with the matter.
The company is holding talks with new and existing investors to sell a minority stake for as much as €100 million, said the people, who asked not to be identified because discussions are private. No deal has been agreed on and the size of the stake and its value will depend on investor demand, the people said.
Destinus, which is based in the Netherlands, plans to raise the money before the end of the year, according to the people. The company is also considering an initial public offering in the coming years, they said.
A spokesperson for Destinus declined to comment.
Destinus was founded in 2021 by Russian entrepreneur Mikhail Kokorich to develop hypersonic aircraft and military unmanned aerial vehicles. It produces a range of weapons, including long-distance strike drones, loitering munitions and interceptors, and has supplied Ukraine after Russia’s full-scale invasion more than three years ago.
Destinus generates annual earnings before interest, taxes, depreciation and amortization of about €75 million, the people said.
Kokorich renounced his Russian citizenship in 2024 due to his opposition to the war in Ukraine and the policies of President Vladimir Putin’s government.
Investor interest in European defense startups has surged, led by a changing geopolitical landscape and a massive rearmament program on the continent. Germany is moving toward spending 5% of its economic output on defense as part of a European push to devote hundreds of billions of euros to reduce military dependence on Washington.
Drones are generally cheaper than traditional missiles and have become the most effective weapons in the war in Ukraine, helping Kyiv resist a much larger and richer opponent. Russia is also increasingly relying on long-range UAVs, launching one of its biggest salvos of the war overnight after Putin vowed to retaliate for a Ukrainian drone attack on Russian air bases.
NATO members have taken note, and are boosting spending on UAVs in an industry that’s been traditionally dominated by China.
Tekever Ltd. recently raised funds at a valuation of over £1 billion ($1.4 billion) after winning a deal to produce drones for the Royal Air Force. Quantum Systems, a German manufacturer of surveillance drones backed by Peter Thiel, in May raised €160 million in new financing with investors including Balderton Capital, Airbus-linked units and Porsche SE.
Destinus’s fund raising comes after Kokorich settled a Securities and Exchange Commission suit regarding fraud claims at his prior company, Momentus Inc. Kokorich last year agreed to pay a $2 million civil penalty and a five-year ban on acting as an officer of a US-listed company in connection with his satellite firm going public in a blank-check merger.
Written by: Aaron Kirchfeld, Yazhou Sun, and Eyk Henning — With assistance from Arno Schuetze and Mark Bergen @Bloomberg
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