Hylio Secures $2M to Expand Ag Drone Production in the US

By Agroempresario.com

Hylio, a Texas-based agricultural spray drone manufacturer, has raised $2 million through the equity crowdfunding platform StartEngine. The funds will be used to expand its production facility, increasing capacity to more than 5,000 drones annually. This move strengthens Hylio’s positioning as a ‘Made in America’ alternative in a market largely dominated by Chinese competitor DJI.

Scaling Production Amid Rising Demand

Hylio has already sold over 850 drones, generating revenues exceeding $30 million. The company’s CEO, Arthur Erickson, emphasized the growing demand for its products, stating that the firm is “backlogged with orders.” With the recent funding round surpassing $2 million and 30 days still remaining, Erickson expects to raise an additional $1-2 million. The company is expanding from a 10,000-square-foot facility to a 50,000-square-foot production site to meet increasing market demand.

Competing with DJI and Navigating Trade Shifts

Hylio is strategically leveraging trade dynamics and regulatory shifts to distinguish itself from DJI. Recent US import tariffs on Chinese goods and potential legislative actions against DJI have created uncertainty for farmers considering investments in Chinese-made drones. Erickson noted that while Hylio’s products are about 35% more expensive than DJI’s, the price gap is narrowing due to these tariffs. If trade tensions escalate under the Trump administration, Hylio’s competitive advantage could strengthen further.

Proprietary Technology and FAA-Approved Swarm Capabilities

A key differentiator for Hylio is its proprietary software, AgroSol, which integrates seamlessly with existing farm management systems. The software includes precision spraying features such as spot-spraying, spline spraying, and zone spraying. Additionally, Hylio’s FAA-approved swarm technology allows a single operator to control up to three drones simultaneously, significantly increasing efficiency for large-scale farming operations. In contrast, DJI drones require one pilot per drone.

Hylio is also developing advanced automation features, including automated EPA/FAA reporting, work order management, and billing solutions, making its drones more appealing to large agricultural enterprises. Erickson envisions a future where drones autonomously recharge and refill, operating for extended periods with minimal human intervention.

Addressing Key Agricultural Challenges

The rising demand for agricultural spray drones is driven by several factors. Traditional crop dusting is becoming increasingly expensive due to a shortage of pilots, while drones offer a more cost-effective and precise alternative. Unlike planes and helicopters, drones can fly closer to crops, reducing chemical drift and overspray. Additionally, drones provide a viable solution for spraying in areas with difficult terrain or excessive rainfall, where ground equipment may struggle to operate.

Hylio continues to refine its supply chain, working on battery innovations that could enable three flights per charge. While some components are still sourced from Asia, the company remains committed to strengthening its US-based manufacturing capabilities.

With strong market demand, regulatory tailwinds, and technological advancements, Hylio is well-positioned to scale its operations and solidify its standing as a leading US-based ag drone provider.