Ukraine’s M-Fly raises cash as NATO buyers show interest

M-Fly, a Kyiv-based company that builds stabilized cameras and laser guidance systems for military drones, has raised a new funding round led by MITS Capital to expand production as orders from Ukraine and NATO countries grow.

Existing investors MITS Capital and Freedom Fund backed the round, joined by Norwegian defense-focused venture firm Gardar and a new investor the company did not name. M-Fly announced the round on Sept. 30 but did not disclose how much it raised or what the company is now worth.

Before this round, the company had raised $1.4 million by mid-2026 through a friends-and-family round, grants from Brave1, the Ukrainian government’s defense technology cluster, and venture funding from MITS Capital, Freedom Fund, Resist.ua and Ukrainian entrepreneur Borys Shestopalov, co-founder of HD-group.

M-Fly’s main products are gimbals, the gyro-stabilized mounts that keep a drone’s camera steady and pointed at a target while the aircraft moves. The company says it has tested its stabilization system in combat in Ukraine at speeds of up to 350 km/h (217 mph).

Its lineup covers several sizes. The RB-220 is a heavy-duty gimbal for large drones, crewed aircraft, helicopters and naval drones that can also serve as a ground station for air defense. The RB-150GD pairs thermal and daylight cameras for medium-sized drones, and a weather-resistant version for boats, the RB-150 Marine, is in development. M-Fly also sells laser guidance systems, including the RB-150CW and Seeker, and plans to release the RB-100, its smallest gimbal for light drones, in the first quarter of 2027.

“Over the past 12 months, we have doubled our team and increased revenue severalfold,” said Vladyslav Myhovych, founder and CEO of M-Fly.

Myhovych said demand from Ukrainian customers and NATO allies has risen sharply since the start of 2026, driven by Ukraine’s growing use of interceptor drones and the resulting need for cheaper reconnaissance drones carrying good cameras. He said a gimbal can make up around a third of the cost of a reconnaissance drone, and that some imported gimbals cost several times more than the aircraft they are mounted on.

“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 chief operating officer of MITS Capital.

M-Fly says it keeps prices down by building nearly everything itself, from motors and camera lenses to cameras and software. The company says that lets it price its systems close to Chinese products while keeping Chinese components below 6% of each unit, an important point for Ukrainian and European buyers wary of relying on China for drone parts.

This year the company also moved its image processing onto a platform built around a graphics processing unit, which it says makes its systems less tied to specific chips and memory components and lets engineers switch parts quickly when supplies run short. Myhovych described the change as making the company “almost hardware-agnostic” amid a global shortage of memory chips.

M-Fly was founded in late 2023 out of its founders’ earlier volunteer project supplying the military, and later went through the MITS Capital accelerator. Myhovych said the new money will go toward expanding production facilities and speeding up how quickly the company adapts its products.