Croatian drone maker Orqa lands $38 million Pentagon contract after competition success

Orqa, a Croatian drone manufacturer founded in Osijek in 2018 by Srđan Kovačević, Ivan Jelušić and Vlatko Matijević, has secured a $38 million Pentagon contract via its U.S. joint venture with By Light. The award follows Orqa US’s second-place finish in the Drone Dominance Gauntlet II close-quarters battle test, where 49 firms competed and only 19 advanced to the final round. The contract covers an eight-inch, indoor-capable MRM2 drone and its ground-control system, with manufacturing shifted to By Light’s 180,000-square-foot plant in Port Orange, Florida.

Orqa’s growth has been driven by demand from Ukraine’s forces after the 2022 invasion, leading to deals with Qatar’s Barzan Holdings, Ukrainian maker General Cherry, and Canadian partner Remote Robotic Systems. The company now serves customers in more than 50 markets, including 24 NATO states, and aims to expand capacity to over one million drones through trusted partners. This contract marks a rare achievement for a Central and Eastern European firm in a major U.S. defence procurement programme.