UK-born DefenceTech startup Arondite secures £9m

British defence tech startup Arondite has secured over £9m in funding to develop AI-powered software focused on human-machine teaming for autonomous systems. The £7.5m seed round, led by Index Ventures, follows an earlier undisclosed £1.7m pre-seed round from Concept Ventures and Creator Fund. The company intends to use the funds to expand operations and its development efforts.

Founded by former British Army Officer and Palantir alumnus Will Blyth (CEO) alongside Rob Underhill (CTO), previously lead engineer at BAE Systems, Arondite is tackling what it calls the "Cambrian explosion" in robotic and autonomous systems. While battlefield interoperability specialists like 2iC focus on secure tactical communications infrastructure (2iC: Big opportunities in battlefield interoperability | TechMarketView), Arondite distinguishes itself by concentrating on AI governance and human control across autonomous fleets. It serves as the "connective tissue" that enables human operators to safely oversee and direct mixed-manufacturer autonomous systems.

In a sector where new AI-focused defence tech SMEs are increasingly capturing MOD attention, Arondite's funding success positions it alongside other British defence innovators like Adarga (Adarga wins £12m R&D deal with MOD | TechMarketView) and Oxford Dynamics (Oxford Dynamics secures £2m GenAI deal with MoD | TechMarketView), which have recently secured EA Lite contracts with the Ministry of Defence.

Blyth's military experience has directly shaped Arondite's vision. He noted in recent blog posts that the company was founded on the belief that "the collective values of the democratic world are under real and increasing threat" and that "defence systems that don't talk to each other make operations far more dangerous."

Unlike traditional interoperability solutions that focus on communications infrastructure (a space where established players like 2iC have been developing solutions for frontline operational units), Arondite's platform addresses three AI-specific challenges: understanding and control over AI models, managing data complexity across autonomous systems, and enabling dynamic teaming of human-machine systems.

This approach complements other critical areas of defence tech innovation, such as Nexor's work on secure information exchange across multiple domains (Nexor: New defence wins underline company strengths | TechMarketView). Nexor, which leads a consortium including 2iC for the MOD's Futures Lab MDIS project, focuses on edge-based processing for battlefield data sharing, showcasing how different UK SMEs are addressing various aspects of the defence interoperability challenge.

In a global environment where defence organisations are rapidly adopting AI technologies for operational use (see NATO's tech acquisition: Palantir advances military AI involvement | TechMarketView), Arondite's specific focus on maintaining human control while enabling AI-driven integration could prove particularly timely.

This significant investment comes amid a broader trend of AI companies entering the defence sector, with notable examples including OpenAI's partnership with Anduril announced late last year—a dramatic shift for a company that previously prohibited military applications of its technology (OpenAI's Military Pivot | TechMarketView). With venture capital and private equity investment in defence tech reaching nearly $2.6bn by September 2024 (exceeding the entire 2023 figure), Arondite's funding reinforces our earlier predictions about accelerating defence tech innovation and growing private investment in UK-based defence SMEs throughout 2025.

Posted by: Georgina O'Toole at 09:40

Tags: defence   funding   investment   AI   interoperability   public sector   defencetech