California-based Skylark Labs, which provides AI for defense and public safety, is reportedly raising up to $150 million to reach a $1 billion valuation. The startup, which serves the Indian Armed Forces, plans to use the funds to scale its workforce and autonomous defense technology. Investors are monitoring the company’s revenue growth as it aims to reach $11 million in FY26.
Detailed Coverage
Skylark Labs, a California-headquartered startup specializing in physical AI for edge devices, is in advanced discussions to secure between $100 million and $150 million in new capital. If completed, this round is expected to bring the company’s valuation above the $1 billion mark. According to reports, approximately 70% of the funding commitments have already been secured, with interest from investors including Bommie Capital, Riceberg, Symphony Ventures, and Cushman & Wakefield.
Scaling Defense-Focused AI
Founded by Dr. Amarjot Singh, Skylark Labs develops AI systems that enable robots, drones, and autonomous vehicles to learn and execute complex tasks. A key feature touted by the company is its ability to train AI models in roughly 15 minutes, which is significantly faster than the months required by many traditional systems. This rapid training capability is specifically designed for high-stakes sectors, including defense, border security, and public safety.
The company has an existing client base that includes the Indian Army, Indian Navy, Indian Air Force, the Border Security Force, and the U.S. Air Force. By focusing on data sovereignty, Skylark Labs aims to allow defense agencies to train models on-site without needing to send classified operational data back to the company, a crucial requirement for sensitive government applications.
Expansion and Financial Targets
The company plans to use the fresh capital to expand its workforce by adding 100 new employees. This hiring drive will support operations across multiple locations, including Pune, Navi Mumbai, Delhi, as well as international hubs in Menlo Park, Indiana, Texas, and Abu Dhabi. The funds are also intended to accelerate the development of new autonomous capabilities, such as advanced mine detection and the operation of broader categories of defense equipment.
Financially, the company is aiming for a strong growth trajectory. While it reported revenues of approximately $3.3 million in the 2025 financial year, it has set a target of $11 million for the 2026 financial year. Investors should note that reaching these revenue targets will depend on the successful execution of its defense contracts and the ability to scale its workforce effectively within the planned timeline. As a private company, Skylark Labs faces the inherent risks of high-growth startups, including the need for continuous capital to fund technology development and the pressure to successfully implement complex AI solutions in unpredictable, real-world defense environments.