Ukrainian defense tech company M-Fly, which develops laser guidance systems and gyro-stabilized platforms for unmanned systems, has raised investment from the US-Ukrainian investment group MITS Capital, Freedom Fund, Norwegian defense venture fund Gardar, and another investor whose name has not been disclosed. The size of the new investment round and the company’s post-money valuation have not been disclosed.
The round was led by MITS Capital, which had previously invested in M-Fly. Freedom Fund also made a follow-on investment in the Ukrainian manufacturer. For Gardar and the undisclosed investor, this marks their first investment in the company.
M-Fly will use the proceeds to expand its production capacity and accelerate the adaptation of its products. The company plans to increase equipment output amid growing demand from Ukrainian customers and NATO countries.
According to M-Fly founder and CEO Vladyslav Myhovych, the company’s team has doubled over the past 12 months, while revenue has increased several times over. Since the beginning of 2026, demand for M-Fly products has risen significantly. One of the factors behind this growth has been the wider deployment of interceptor drones in Ukraine. In addition, demand is increasing for relatively affordable reconnaissance UAVs equipped with high-quality optical systems.
M-Fly was founded in late 2023 on the basis of a volunteer project. The company develops and manufactures equipment for aerial, maritime, and ground-based unmanned platforms. Its core products are laser guidance systems and gyro-stabilized platforms used to stabilize optical and other sensors installed on unmanned systems.
The company’s product portfolio includes the RB-150CW and Seeker laser guidance systems, the RB-220 gyro-stabilized platform for large UAVs, aircraft, helicopters, and maritime drones, the RB-150GD dual-sensor system, as well as the all-weather RB-150 Marine model. M-Fly also plans to launch the compact RB-100 model, designed for small drones, in the first quarter of 2027.
According to Myhovych, a gyro-stabilized platform can account for around one-third of the cost of a reconnaissance UAV. At the same time, imported systems of this type can in some cases cost several times more than the drone itself. M-Fly’s stabilization platform has already been tested under combat conditions at speeds of up to 350 km/h.
The company develops its own motors, optics, cameras, and software for its systems. Chinese components account for less than 6% of M-Fly’s products. According to the founder, the company’s systems are nevertheless priced close to comparable Chinese solutions.
In 2026, M-Fly also shifted data processing from RAM to GPUs in order to reduce its dependence on certain types of chips.
Prior to the new investment round, M-Fly had raised $1.4 million as of mid-2026. This amount included funding from the founders’ friends and family, grants from the Brave1 defense technology cluster, as well as venture investments from MITS Capital, Freedom Fund, Resist.ua, and entrepreneur Borys Shestopalov, co-founder of HD-group.
The new round represents the next stage of capital raising aimed at scaling up production. At the same time, the company has not disclosed either the amount of the new financing or its post-money valuation.
MITS Capital is a US-Ukrainian investment group established in early 2024 to invest in Ukraine’s defense-industrial sector. Its structure includes the MITS Lightning Fund, MITS Accelerator, an investment and advisory team, and MITS LAB. As of September 2026, MITS Capital’s portfolio comprised 20 companies.
The third cohort of MITS Accelerator includes projects in defense components, communications, artificial intelligence, weapons systems, counter-UAS technologies, and battlefield automation. For M-Fly, the new financing will support the expansion of production capacity and accelerate the development and adaptation of equipment for unmanned systems amid growing demand in Ukraine and from NATO countries.
