Elroy Air expands PIPE funding to $175 million for heavy-cargo drone development

Elroy Air expanded its previously announced private investment in public equity (PIPE) commitments to $175 million. Existing investors, including Lockheed Martin Ventures and Inflection Point, participated. 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 developer focuses on autonomous heavy-cargo drones for defence, rapid-response operations, and commercial logistics. Inflection Point Chairman and CEO Michael Blitzer cited Elroy's progress since the June transaction announcement, including a new US Army contract, tripled deposit-backed orders with Bristow, manufacturing advancements with Kratos, and successful flight demonstrations under the FAA's eIPP.

Elroy Air was recently awarded a multi-year contract worth up to $46 million by the US Army, building on contracts secured over the past two years. The work will focus on enhancing the Chaparral heavy-cargo drone's ability to operate alongside service members in contested and austere environments, including improvements to modular multi-mission payload capabilities and payload delivery systems. The company also completed its first autonomous, uncrewed flights authorised under the US Department of Transportation and Federal Aviation Administration's eVTOL Integration Pilot Program (eIPP), conducted with LIFTOFF Louisiana and Bristow Group. These 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 by 10, bringing its total to 15 aircraft; it had previously reserved five and signed a pre-order agreement for up to 100 Chaparral drones. Kratos Defense & Security Solutions, the exclusive US 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's Chaparral autonomous VTOL aircraft can carry more than 500 pounds of cargo without runways or fixed infrastructure, and its hybrid-electric powertrain provides a range of up to 450 miles without charging infrastructure.