Swedish Investors Invest in Scaling Ukrainian Drone Engine Company AeroMotors

Ukrainian drone engine manufacturer AeroMotors has secured Swedish investment to scale up its production operations.

The company announced that it raised $550,000 from the Swedish investment firm Front Ventures.

The funding will be used to expand manufacturing capacity and acquire new production equipment.

The company’s aim is to triple its production volumes in order to meet growing demand from unmanned systems operators.

“Today, 98% of drone engines worldwide are manufactured in China. Europe needs resilient and independent alternatives and we are creating them,” AeroMotors stated.

The company’s key differentiator is its full in-house production cycle from automated manufacturing processes to final assembly and testing.

“No critical outsourcing. No fragile supply chains. Full control over quality, timelines, and performance,” the company adds.

AeroMotors also highlighted the important role of investment from MITS Capital, which helped lay the foundation during the company’s early stage of development.

The Swedish investor will also assist the Ukrainian company in launching production lines in Europe.

Front Ventures explained that it decided to invest in AeroMotors because “demand for non-Chinese drone engines is growing, and the Ukrainian company manufactures all components in-house and is able to customize its engines to meet customer requirements.”

“Currently, AeroMotors has established customers in Ukraine and in two NATO countries, and the company is in a phase of active growth with the goal of further expansion into the European market,” Front Ventures added.

The investment is of major strategic importance for Front Ventures, as it provides access to European-made drone engines for the joint venture Drönarfabriken Scandinavian X, while also strengthening Europe’s independence in critical defense technologies.