Helsing, the Munich-based defence technology startup, is challenging traditional military manufacturing by prioritizing software development over hardware complexity. The four-year-old company has emerged as one of Europe’s most valuable startups, reaching a £10.2 billion valuation whilst developing artificial intelligence systems for modern warfare applications.
Founded in March 2021 by co-CEOs Gundbert Scherf and Torsten Reil alongside technology chief Niklas Köhler, the startup initially struggled to attract venture capital interest. Early funding of £7.2 million came from wealthy families and individuals rather than traditional investment firms. The founders’ conviction that Europe and democracy were under attack, drove their mission to use AI to protect democracy through innovative military technologies.
Rapid Growth Through Ukraine Operations
Helsing gained public attention as a drone supplier to Ukraine, fulfilling an initial order for 4,000 combat units. The company announced in February 2025 that it would produce an additional 6,000 drones for Ukrainian forces, with Germany providing financing whilst Kyiv acts as the client. Simon Brünjes, vice president of sales, confirmed that 1,950 drones from the first order have already reached Ukraine.
The startup’s evolution from its first-generation HF-1 model, manufactured in Ukraine through local partnerships, to the internally developed HX-2 demonstrates its technological advancement. The new 12-kilogram precision drone operates at ranges up to 100 kilometers and targets artillery, armoured vehicles, and military installations. Its AI capabilities enable resistance to electronic warfare attacks and jamming measures through visual navigation systems that compare real-time ground images with stored mapping data.
Swarm Technology and Human Oversight
Helsing’s reconnaissance software, Altra, coordinates multiple HX-2 drones into collaborative swarms under human operator control. The company maintains strict ethical guidelines, and believes in the principle that a human needs to be in or on the loop for all critical decisions.
This approach addresses growing concerns about autonomous weapons systems whilst maximising operational effectiveness.
The HX-2 will replace the HF-1 in Ukrainian operations and undergo testing by Germany’s military along with other armed forces. However, formal procurement decisions from these organisations remain pending.
Resilience Factory Network
Helsing’s manufacturing strategy centres on resilience factories – geographically distributed production facilities designed for rapid scaling during conflicts. The company commissioned its first factory at an undisclosed southern German location in February, with current monthly output of 450 drones expandable to 1,000 units. A second facility is already under development.
These factories aim to produce tens of thousands of drones monthly at reduced unit costs using local supply chains and labour. The distributed approach enables independent manufacturing of critical defence goods across multiple European locations, reducing dependency on centralised production vulnerable to disruption.
Expanding Operations and Workforce
The startup now employs approximately 600 people across its Munich headquarters and European locations. This figure increased by 275 employees following Helsing’s acquisition of Grob Aircraft, a Bavarian composite aircraft manufacturer, announced in June. The diverse workforce combines former military officers with technology specialists, reflecting the company’s hybrid military-tech culture.
Helsing’s investors include notable technology figures such as Spotify founder Daniel Ek. Despite its substantial valuation, the company states it intends to remain independent with no immediate plans for public offering. This approach allows continued focus on technological development and strategic partnerships rather than shareholder expectations.
The startup represents a broader shift in defence technology, where software-driven solutions complement traditional hardware-focused military contractors. As geopolitical tensions reshape European security priorities, companies like Helsing are positioning distributed, AI-enhanced manufacturing as essential infrastructure for democratic nations’ defence capabilities.