Elroy Air has expanded its private investment in public equity (PIPE) commitment to $175 million, the company said, ahead of its anticipated business combination with Inflection Point Acquisition Corp. VII (NASDAQ: IPXG).
Of the total commitment, $75 million had already been funded prior to closing of the transaction, which was initially announced in June and is subject to shareholder approval.
Participating investors include Lockheed Martin Ventures, Inflection Point, DiamondStream Partners, Catapult Ventures, and Shield Capital, the company said.
San Francisco-based Elroy Air develops the Chaparral, an autonomous vertical takeoff and landing heavy-cargo aircraft designed to carry more than 500 pounds with a range of up to 450 miles. The aircraft will be manufactured by Kratos Defense & Security Solutions at its Sacramento facility, with first production units expected in late 2026.
In a separate development, the U.S. Army awarded Elroy Air a multi-year contract worth up to $46 million, building on agreements from the past two years aimed at enhancing the Chaparral drone's capabilities for contested environments.
The company also completed its first autonomous and uncrewed flights under the Federal Aviation Administration's eVTOL Integration Pilot Program, conducted in partnership with LIFTOFF Louisiana and Bristow Group across the Gulf Coast.
Bristow Group, which entered a pre-order agreement earlier this year for up to 100 Chaparral drones, has expanded its early delivery reservations from five to 15 units.
