Global private equity firm Blackstone is in talks to invest $400-500 million in Bengaluru-based defence and avionics technology company Accord Software Systems Pvt Ltd (ASSPL) for a significant minority stake, three people with direct knowledge of the matter said.
The potential deal underscores growing private equity and venture capital interest in India’s defence technology sector, as rising geopolitical tensions worldwide drive demand for advanced military technologies and push countries to strengthen domestic defence capabilities.
“Blackstone is in talks to pump growth capital into the company for a significant minority stake,” the first of the three persons cited earlier said, all speaking on condition of anonymity.
Founded in 1991 by five engineers with experience in avionics and real-time embedded systems, Accord has evolved from a software developer into a specialist in global navigation satellite systems (GNSS). The company designs, develops and manufactures GNSS-based products and solutions for defence and space programmes. It makes satellite navigation devices, specialised computer chips and electronic systems that help aircraft, and military vehicles determine their precise location and navigate safely.
“There is a growing interest among large private equity firms to invest in defence, aerospace and manufacturing technology companies,” said the second person, adding that Accord sits right at the centre of this theme. Blackstone is in talks to acquire a 17-20% stake in the company, as India caps foreign ownership in companies classified as indigenously designed, developed and manufactured (IDDM) that supply equipment to the government at 49%, the person said.
“The deal can go up to 49% depending on how the talks progress,” this person added.
According to the third person, consulting firm is helping Accord company with the fundraise.
“The primary capital will help the company diversify into newer areas. Taking its products at a global stage too will be one of the aspirations,” the person added.
Queries emailed to PwC and Accord Software Systems did not elicit any response. Blackstone declined to comment.
In a September 2025 credit rating note, Crisil said that the company had a turnover of around ₹234.52 crore in fiscal year 2025 (FY25), and was expected to grow at more than 30% in FY 26.
“Crisil Ratings believes high entry barriers preventing competition coupled with the healthy order book and the extensive experience of ASSPL’s promoters is expected to strengthen the business risk profile over the medium term,” it said.
ASSPL serves several and establishments and other public sector undertakings. “The growth in earnings was supported by order execution, high margin products in Electronic Warfare Support Systems or EWSS and GHNSS receiver products. Ebitda is expected to further improve in fiscal 2026, expected to be in the range of 30-35%, driven by the expected completion of ongoing and upcoming orders,” Crisil said.
The company provides navigational and positioning products and timing systems to various defence and space organisations.
Defence and aerospace is among India’s sunshine sectors that private equity and venture capital firms are betting on. The government has been pushing for greater private-sector participation in defence manufacturing. Over the years, it has launched initiatives such as iDEX, ADITI and Make in India, besides earmarking 25% of the defence research and development budget for the private sector, to reduce import dependence, Mint reported last month.
This year, India’s private capital is increasingly turning to harder-to-build sectors such as space and defence, which fall under the broader deeptech category, especially in the early stage.