Rami Levy-Backed Kando Drones Raises 19 Million Shekels Ahead of Tel Aviv Stock Exchange Listing

Kando Drones, a drone technology company partly owned by Israeli retail giant Rami Levy (30.5% stake), has completed an initial public offering (IPO) valuing the company at approximately 102 million shekels. The shares are expected to begin trading on the Tel Aviv Stock Exchange in the coming days. The company raised about 19 million shekels by allocating roughly 20% of its shares to new investors, with additional options granted that could increase proceeds by around 14 million shekels if fully exercised, reflecting a lower effective valuation than the share price suggests.

Yoeli Or, Kando Drones’ CEO and co-founder, stated that the IPO marks a significant milestone that will enable the company to expand domestically and internationally, deepen collaborations with military and civilian clients, and continue developing autonomous drone systems and advanced aerial solutions. The company operates in a growing market with increasing demand for smart aerial solutions, leveraging its military and technological expertise and an existing order backlog.

Despite the positive outlook, Kando Drones currently reports modest projected revenues of about 7 million shekels for 2025 alongside losses of approximately 11.9 million shekels, worsening from a 6.4 million shekel loss in 2024. It holds an order backlog of around 37 million shekels expected to be fulfilled over the next two years. The company also faces a 5 million shekel equity deficit and negative cash flow from operations of about 2.9 million shekels, prompting auditors to issue a "going concern" warning regarding its future viability.

Founded in late 2019 by three former Israeli military officers, including Or, Kando Drones develops and manages autonomous drone systems for both security and civilian applications. Its services include surveillance and monitoring for civilian clients such as municipalities and industrial sites, as well as automated inventory management and warehouse control using drones. The company also offers cargo and passenger drone transport with payloads up to 250 kilograms. Notably, it has completed over 1,200 deliveries, including medical supplies between hospitals in Haifa and Nahariya.

Regulatory restrictions have limited some ambitions, such as flying taxis, but the company has pivoted to defense applications. Following the outbreak of Operation Iron Swords, Kando partnered with Elbit Systems to develop a drone-mounted machine gun system for remote and automatic fire support. Demonstrations were conducted last year for the Ministry of Defense’s R&D Directorate, with approval processes underway for initial orders.

Earlier attempts to list Kando via a merger with the shell company Retail Minds were abandoned in early 2026, leading to a settlement payment of about 700,000 shekels to Retail Minds. Rami Levy initially invested in Kando in 2022, acquiring about one-third of the shares for 1.7 million shekels and providing a 3.3 million shekel shareholder loan.

The company’s IPO, led by underwriter Eximus Capital, represents a key step in its growth strategy amid a challenging financial and regulatory environment.