Elroy Air Announced Increased PIPE Investments of $175 Million
Elroy Air has increased the size of its previously announced private investment in public equity (PIPE) commitments to $175 million, with existing investors including Lockheed Martin Ventures and Inflection Point participating.
The autonomous cargo aircraft developer said $75 million of the expanded funding has already been received ahead of the planned closing of its business combination with Inflection Point Acquisition Corp. VII.
Elroy Air said the additional capital will be used to accelerate production of its Chaparral autonomous heavy-cargo aircraft for commercial and defence customers. The company is developing the aircraft for logistics missions where conventional ground or fixed infrastructure may be unavailable or difficult to access.
The expanded investment also deepens Elroy Air’s relationship with Lockheed Martin. The two companies intend to collaborate on advanced autonomous systems and joint business development across commercial and defence markets.
The financing announcement follows several developments involving the Chaparral programme. Elroy Air recently secured a multi-year US Army contract worth up to $46 million. The agreement is focused on increasing the aircraft’s modular multi-mission payload capabilities and delivery systems for operations in contested and austere environments.
The company has also completed autonomous and uncrewed Chaparral flights under the US Department of Transportation and Federal Aviation Administration’s eVTOL Integration Pilot Program. The flights were conducted in Louisiana with LIFTOFF Louisiana and Bristow Group and were intended to demonstrate autonomous cargo operations for potential commercial use across the Gulf Coast.
Bristow has subsequently increased its early delivery reservations for Chaparral from five to 15 aircraft. The operator has also previously agreed to pre-order up to 100 Chaparral aircraft.
Production is being handled by Kratos Defense & Security Solutions, which is the aircraft’s exclusive US manufacturer. Kratos is expanding its Sacramento, California facility, with the first production Chaparral aircraft planned for late 2026.
