Elroy Air expands PIPE funding to $175 million

Elroy Air has expanded its previously announced private investment in public equity (PIPE) commitments to $175 million, strengthening funding for the development of its autonomous heavy-cargo drone technology.

Existing investors, including Lockheed Martin Ventures and Inflection Point, participated in the expanded commitments. The company said $75 million has already been funded ahead of the closing of the Business Combination Agreement between Elroy Air and Inflection Point Acquisition Corp. VII, formerly Columbus Circle Capital Corp II.

The US-based technology developer is focused on autonomous heavy-cargo drones for defence, rapid-response operations and commercial logistics.

Michael Blitzer, Inflection Point Chairman and CEO, said, “Inflection Point's increased financial commitment and PIPE upsize reflect our confidence in Elroy's progress since our transaction announcement in June. In this time, Elroy won a significant new contract with the US Army, tripled deposit-backed orders with Bristow, advanced its manufacturing timeline and scale with Kratos, and continued with successful flight demonstrations including the first autonomous flights under the FAA's eIPP. Now, with Elroy's continued strategic investment and expanded collaboration with Lockheed Martin, Elroy is the clear leader in the rapidly growing heavy-lift autonomous drone market."

Elroy Air CEO Dr. Andrew Clare said, “We’re proud to have the support and conviction of Inflection Point and our existing investors. Lockheed Martin has been a long-standing collaborator in our vision to revolutionize logistics in contested environments, and this strategic investment deepens that relationship, and we’re proud to continue our work together."

Lockheed Martin and Elroy Air plan to collaborate on several initiatives, including the development of advanced autonomous systems and joint business opportunities across commercial and defence markets.

"Modern conflict increasingly depends on the ability to resupply forces quickly, without the fixed infrastructure that makes traditional logistics vulnerable. Lockheed Martin Ventures' continued investment in Elroy Air signals our commitment to keeping pace with our customers' requirements, helping ensure mission readiness for the U.S. and its allies. As an early strategic investor, we’re proud to see the Elroy Air team take the company public,” said Chris Moran, Vice President and General Manager of Lockheed Martin Ventures.

Elroy Air was recently awarded a multi-year contract worth up to $46 million by the U.S. Army. The agreement builds on contracts secured over the past two years and will focus on enhancing the Chaparral heavy-cargo drone’s ability to operate alongside service members in contested and austere environments. The work will include improvements to its modular multi-mission payload capabilities and payload delivery systems.

The company has also completed its first autonomous, uncrewed flights authorised under the U.S. Department of Transportation (USDOT) and Federal Aviation Administration’s (FAA) eVTOL Integration Pilot Program (eIPP). Conducted with LIFTOFF Louisiana and long-time partner Bristow Group, the flights demonstrated the Chaparral’s potential for commercial cargo operations along energy and industrial corridors across Louisiana, Texas and Mississippi.

Following the flights, Bristow Group expanded its early delivery reservations for the Chaparral by securing 10 additional positions, taking its total reservations to 15 aircraft. The company had previously reserved five early delivery positions and signed a pre-order agreement for up to 100 Chaparral drones.

Kratos Defense & Security Solutions, the exclusive U.S. manufacturer of the Chaparral, will produce the aircraft at its expanding facility in Sacramento, California. The first production aircraft is scheduled for delivery in late 2026.

Elroy Air is a U.S.-based developer of autonomous heavy-cargo drones for commercial, rapid-response and defence logistics. Its Chaparral autonomous VTOL aircraft can carry more than 500 pounds of cargo without requiring runways or other fixed infrastructure. Its hybrid-electric powertrain provides a range of up to 450 miles without the need for charging infrastructure.