Ukrainian defence tech company M-Fly, which develops laser guidance systems and gyro-stabilized gimbals for unmanned platforms, has secured a new funding round led by MITS Capital. The amount and valuation were not disclosed.
- Founded in 2023, M-Fly develops imaging and guidance systems for air, maritime, and ground unmanned platforms. The company’s core technologies have been tested in battlefield conditions in Ukraine, including its stabilization platform at speeds of up to 350 km/h.
- By mid-2026, M-Fly had secured $1.4 million through a combination of a friends-and-family round, grants from the state-owned defense tech cluster Brave1, and investments from MITS Capital, Freedom Fund, Resist.ua, and Ukrainian entrepreneur Borys Shestopalov, co-founder of HD-group.
- Since the beginning of 2026, the company has seen growing demand from Ukrainian customers and NATO allies. This has been driven partly by the increasing use of interceptor drones in Ukraine and the resulting need for lower-cost reconnaissance UAVs equipped with high-quality imaging systems.
- According to M-Fly founder and CEO Vladyslav Myhovych, the startup has doubled its team and increased revenue severalfold. Beyond this commercial traction, investors highlighted another advantage — the company's unit economics.
“What matters even more than performance is that 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.
- M-Fly’s product portfolio includes laser-guided systems such as RB-150CW and Seeker, as well as the RB-220 heavy-duty gimbal for large UAVs, manned aircraft, helicopters, and naval drones. It has also developed the RB-150GD dual-sensor gimbal for medium-class drones that combines thermal and daylight imaging, and is working on a weather-resistant version for maritime applications.
Why it matters
- Imaging systems are a major cost bottleneck for reconnaissance drones — according to M-Fly, a gimbal can account for roughly one-third of a UAV's total cost, while some imported systems cost several times more than the aircraft carrying them. By lowering the price, M-Fly aims to make capable reconnaissance platforms cheaper to produce and deploy at scale.
- The company is also reducing reliance on Chinese supply chains — an important consideration for Ukrainian and NATO customers. M-Fly develops its core components, including motors, lenses, cameras, and software, in-house. This allows it to price its systems close to Chinese alternatives while keeping the share of Chinese components below 6%.
Details of the deal
- Existing investor Freedom Fund participated alongside Norwegian defence-focused VC Gardar, and an undisclosed new investor.
- M-Fly will use the fresh capital to scale its production facilities and accelerate product development and adaptation to meet rising demand from Ukrainian and NATO customers.
- The company plans to launch its RB-100 gimbal, designed for small drones, in the first quarter of 2027.
