Ukraine’s M-Fly raises new investment round to scale up gimbal production

Ukrainian defence tech startup M-Fly, which develops laser-guidance systems and gimbals for UAVs, has raised a new round of investment. MITS Capital led the round, with Freedom Fund, Gardar, and another undisclosed investor also participating. Defender learned about the deal from MITS.

The parties have not disclosed the investment size or the company’s current valuation. M-Fly said it will use the funds to scale production capacity and accelerate product adaptation.

What is known about the deal

The financial terms of the deal have not been disclosed, but MITS Capital’s typical cheque size ranges from $500,000 to $3 million, while Freedom Fund typically invests $100,000–$200,000

These funds have already invested in M-Fly in the previous $1.3m round, while Norway’s Gardar is backing the company for the first time. The fund invests in early-stage companies, as its managing partner Erlend Prestgard told Defender Media.

The new funding will allow the company to scale production facilities and speed up product adaptation to hold a visible share of the drone camera market. According to M-Fly founder and CEO Vladyslav Myhovych, the market will exceed $100bn over the next 5–7 years.

‘The company has cracked the unit economics, allowing it to price its products significantly below those of its closest competitors,” said Denys Gurak, co-founder and COO/CIO of MITS Capital. ‘That’s why we decided to support the next stage of its growth with additional funding’.

The company develops the key components of its products in-house, and has also moved its computing architecture from RAM to a GPU-based platform. This has made it independent of the global RAM shortage.

What M-Fly is working on

M-Fly was founded in 2023 and currently produces the RB-150CW and Seeker laser guidance systems, as well as high-precision gimbals for aerial, naval and ground unmanned vehicles: the RB-220 for large UAVs, crewed aircraft, helicopters and naval drones, and the RB-150GD for medium-class drones.

The company is also developing the RB-150 Marine, a gimbal for boats and cutters, and plans to release the RB-100, designed for small drones, in early 2027.

Myhovych says that demand for their products from Ukrainian customers and NATO allies has grown since the beginning of 2026. Over the past 12 months, the company has doubled its team and increased its revenue several times over. The revenue of the company’s Ukrainian LLC in 2025 was UAH 14.7m, according to the analytics platform YouControl.