French Drone Maker Harmattan AI Targets $1B Valuation in Defense Boom

Harmattan AI, a Paris-based defense drone startup, is seeking a billion-dollar valuation in its latest funding round, just 18 months after launching, according to reporting by Sifted. The ambitious raise comes as the company has already secured major contracts with French and UK military forces, positioning it as a rising force in Europe’s surging defense technology sector. Harmattan’s meteoric rise signals a fundamental shift in how Western militaries are approaching unmanned systems procurement—favoring rapid production and proven performance over lengthy development cycles.

From Stealth Mode to Major Contracts

The company previously raised $30 million in an undisclosed round led by US venture capital firm FirstMark, with Germany’s Atlantic Labs also participating. Sources familiar with the matter tell Sifted that Harmattan is now in discussions with US investor Insight Partners and Dassault, the French aerospace giant known for military aircraft and business jets, though the round has not yet closed. Harmattan’s CEO and cofounder Mouad M’Ghari reportedly declined to comment on the fundraising details.

Rapid Production Plans and Military Orders

Self-described as the “European Anduril,” Harmattan is developing three core products: a training-focused system, a surveillance drone, and an interceptor drone designed to neutralize incoming weapons. The startup has already secured two programs-of-record (PORs)—government-funded acquisition programs that provide stable, long-term revenue streams.

In July 2025, the French defense ministry ordered 1,000 drones from Harmattan for delivery by year’s end. Earlier this month, the company announced a more substantial contract: delivering 3,000 systems as part of a “multi-million programme” with the UK Ministry of Defence for “near-term deployment to meet urgent operational needs.” To meet this demand, Harmattan reportedly plans to build a French facility next year capable of producing 10,000 drones monthly, with additional manufacturing sites planned for Germany and the United States in 2026.

Europe’s Defense Tech Investment Surge

Harmattan’s rapid ascent reflects broader momentum in European defense technology. Venture capital firms invested €946.3 million ($1.03 billion USD) into European defense startups in the first half of 2025—a 26% increase compared to the same period in 2024, making defense one of the top five best-funded sectors for the first time. The timing aligns with increased European defense spending and a strategic push for domestic military technology development in response to evolving security threats.

DroneXL’s Take

Harmattan AI’s trajectory from launch to potential unicorn status in under two years is remarkable—but it raises critical questions about scalability and execution. Can a startup really deliver 10,000 drones monthly while simultaneously opening three international manufacturing facilities? The defense industry is littered with ambitious promises that fell short on delivery timelines.

That said, the fact that Harmattan has already secured not just contracts but actual PORs from two major NATO militaries suggests they’ve demonstrated something tangible. The comparison to Anduril is telling: both companies are betting that modern military procurement needs speed and volume over perfection, particularly for expendable systems like interceptor drones.

If Harmattan can execute on these production targets, they could fundamentally reshape European defense manufacturing. The bigger question: will American investors and partners view this as a strategic opportunity or a potential competitor to domestic defense tech champions?

What’s your take on Harmattan’s rapid rise? Can they deliver on these ambitious production targets? Share your thoughts in the comments below.