Israeli defense tech firm ASIO lands Anduril deal worth tens of millions, raises $15 million
After more than 20 years of self-funding, ASIO secured its first outside investment as demand for battlefield tactical technology surges.
For more than two decades, Kfar Saba-based defense technology company ASIO grew without raising external capital, financing its operations through profits. But surging global defense spending, geopolitical instability, and the rapid rise of venture capital funds focused on defense technology have prompted the company to seek outside investment for the first time.
ASIO has raised $15 million in its first funding round, led by Protego Ventures, the defense-tech fund founded by Lital Leshem and Lee Moser, together with U.S.-based Aliya Capital Partners. Until now, the company had financed its growth entirely from its own cash flow and has remained profitable throughout most of its history.
Aliya Capital Partners, a Miami-based investment firm managing approximately $6 billion in assets, has completed more than 70 investments. Its venture portfolio focuses on advanced-stage companies developing artificial intelligence, space, defense and autonomous systems technologies.
ASIO currently employs around 70 people and plans to significantly expand its workforce as demand for its products grows.
One of the company's most notable customers is U.S. defense technology company Anduril, which is establishing operations in Israel. ASIO executives have met with Anduril founder and CEO Palmer Luckey during his visits to Israel, and the Israeli company is expected to supply components for Anduril's unmanned aerial vehicles. The deal is estimated to be worth tens of millions of dollars.
Founded in 2003 by brothers Tomer Malchi and Yaniv Malchi, ASIO develops tactical and situational awareness systems designed for maneuvering ground forces. Its products are intended to increase operational independence by improving coordination, navigation and communication between military units operating in complex environments.
The company's portfolio includes the IDF's military smartphone and a range of additional systems built around its proprietary GeoFusion technology. The systems are designed to provide advanced situational awareness, resilient navigation and operational coordination, even in environments where GPS signals or communications networks are unavailable or disrupted.
ASIO's systems are deployed across all branches of the Israel Defense Forces. Among them is the ULAR system, which has been operational in the IDF for several years and has seen extensive use during military operations over the past three years. The company's products are also in operational use by defense customers in multiple countries.
The new funding will be used to expand manufacturing capacity, accelerate product development and support international expansion.
ASIO opened a U.S. office last year and has recently recruited several senior executives from the defense industry, including Giora Shaked, who previously held senior positions at Rafael and Cognyte.
"ASIO has reached this stage without raising external capital while maintaining profitability," Leshem said. "From our perspective, this investment is based on a company that has already demonstrated that its technology addresses a real operational need."
