However, Xtend has faced controversy due to its military applications and its receipt of an R&D grant from the EU’s Horizon Europe fund, despite a prohibition on EU funding for military and defense projects. The company has also been criticized for its use of drones in surveillance of legal demonstrations. Despite these issues, Xtend has won $50 million in contracts to date and plans to use the new funding to expand its workforce and shift to a platform-as-a-service and software-as-a-service sales model. The company is also planning international expansion, with a focus on Japan.
Key takeaways:
- Aviv and Matteo Shapira, founders of Replay, have launched a new startup called Xtend, which provides a platform for managing drones and robots developed both in-house and by third-party vendors.
- Xtend recently announced a $40 million funding round led by Chartered Group, bringing the company's post-money valuation to around $110 million.
- The company has contracts with the Israel Defense Forces and the U.S. Department of Defense to develop and deliver its systems, including drone interceptor systems, for operational evaluation.
- With the new funding, Xtend plans to expand its workforce by 50% across the U.S., Israel, and Singapore by the end of the year and shift to a combination of platform-as-a-service and software-as-a-service sales models.