UK-based marine tech firm RAD has secured £4.4 million in a funding round led by Mercia Ventures to accelerate the commercialization of its electric propulsion systems and its “Axon” open-architecture autonomous vessel platform. The capital injection will drive international expansion into the US and scale its engineering capacity, positioning the company to capture surging defense and commercial demand for flexible, zero-emission maritime solutions.
United Kingdom | July 8, 2026 – As the global maritime sector faces compounding pressures to decarbonize and digitize, the race to provide scalable, intelligent, and zero-emission marine infrastructure is accelerating. In a significant move for the sector, UK-based marine technology firm RAD has announced the closure of a £4.4 million funding round aimed at fast-tracking the commercialization of its electric propulsion systems and autonomous vessel architectures.
The funding round, led by mid-market venture capital firm Mercia Ventures, marks a critical inflection point for RAD. The influx of capital is earmarked for international expansion, including a strategic beachhead in the United States, and the accelerated rollout of its proprietary open-systems architecture, Axon.
The Shift Beyond Automotive: Electrifying the Marine Mix
For energy markets and bunkering hubs watching the slow-burn transition away from conventional marine fuels, the electrification of light commercial, defense, and coastal vessels represents the immediate frontier of alternative energy adoption.
“We watched electrification reshape road transport over the last decade,” noted Ruth Coleman, Investment Manager at Mercia Ventures. “Marine is about to go through the same shift, and RAD is building the platform for it for manned and autonomous vessels alike.”
Unlike the automotive sector, which benefited from standardized battery form factors and early regulatory alignment, the marine sector presents harsh operating environments and highly fragmented vessel designs. RAD’s approach positions electric propulsion not merely as an engine swap, but as an integrated energy management problem. By tying high-performance electric drivetrains to intelligent software, the company aims to optimize battery efficiency, extend vessel range, and lower the total cost of ownership for commercial fleet operators.
De-risking the Supply Chain via Open Architecture
A core driver behind the successful fundraise is the commercial momentum of Axon, RAD’s open systems architecture for uncrewed and autonomous surface vessels (USVs). Launched in May 2026 at the Combined Naval Event (CNE) in Farnborough, Axon aims to solve a persistent bottleneck in maritime procurement: vendor lock-in.
Historically, boat builders and defense contractors looking to deploy autonomous or electric vessels were forced into proprietary, closed-loop ecosystems. Axon decouples the physical vessel and propulsion hardware from the underlying autonomy and mission software.
“We believe the industry is moving towards open, flexible vessel architectures that allow systems, autonomy software, and mission applications to evolve independently,” said Rich Daltry, Co-CEO and founder of RAD. “This funding gives us the runway to scale commercially, grow our electric propulsion systems portfolio, and expand into key international markets.”
For commercial operators and defense agencies, this open-architecture framework enables rapid deployment cycle times. It allows operators to upgrade software or swap out sensors without needing to overhaul the vessel’s primary energy management or propulsion systems.
Strategic Priorities: Where the Capital Flows
According to RAD, the £4.4 million injection will be deployed across four core operational pillars:
| Strategic Priority | Target Impact |
| International Expansion | Establishing a permanent footprint in the US market, having already hired its first stateside personnel to capture North American defense and commercial demand. |
| Axon Commercialisation | Scaling production of the open architecture platform to allow faster integration for uncrewed vessel builders and software providers. |
| Portfolio Expansion | Continuing R&D into next-generation electric propulsion systems and advanced energy management technologies. |
| Engineering Growth | Expanding the company’s applications engineering and delivery teams to handle a growing backlog of defense and commercial contracts. |
The Broader Horizon: Dual-Use Tech and Bunkering Reimagined
RAD’s dual focus on defense and commercial applications insulates it from the cyclical volatility often seen in pure-play commercial shipping. In the defense sector, the demand for autonomous, low-acoustic, and low-thermal-signature USVs for intelligence, surveillance, and reconnaissance (ISR) is at an all-time high.
Concurrently, in the commercial sphere, the technology directly targets the harbor craft, ferry, and offshore wind support vessel markets—sectors under intense regulatory pressure to eliminate localized emissions.
For the broader marine fuel and bunkering ecosystem, the growth of firms like RAD serves as a clear indicator of a diversifying energy mix. While deep-sea shipping grapples with the complexities of green methanol, ammonia, and LNG, the coastal and short-sea segments are rapidly solidifying their path toward electrification. RAD’s successful raise signals that institutional capital is increasingly comfortable betting on the digital and electric architecture that will govern these next-generation fleets.
About RAD
Founded in 2018 by maritime tech entrepreneurs Dan Hook (CEO) and Rich Daltry (Co-CEO), RAD (often operating commercially as RAD Propulsion) is a UK-based marine technology firm headquartered in Southampton. The company bridges the gap between digital tech, robotics, and clean energy, positioning itself not just as an hardware manufacturer, but as an architectural pioneer for modern smart shipping.
Rather than catering heavily to the recreational boating market, RAD focuses strategically on high-value, high-reliability sectors: defense, commercial marine, and Uncrewed Surface Vessels (USVs).
Core Technology Offerings
RAD’s commercial edge lies in combining physical electric powertrains with the intelligent, network-based software required to run them cleanly and autonomously.
1. Electric Propulsion & Energy Management
RAD builds scalable, drive-by-wire electric propulsion systems.
- RAD 40: A modular 400-volt electric outboard system designed to give boat builders total freedom over vessel layouts. It is widely used in catamaran configurations and light commercial craft.
- RAD 120: A high-power 120 kW (160 hp) continuous electric drive weighing just 175 kg, targeted at demanding commercial operations and high-spec defense vessels.
- All systems route through their proprietary RADBus system architecture, optimizing battery life and power distribution.
2. The Autonomy Stack & Axon Platform
At the heart of RAD’s growth is its vision for uncrewed maritime operations:
- Axon Architecture: Launched in May 2026, Axon is an open hardware and firmware platform installed onboard vessels. It acts as a central translator, coordinating propulsion, steering, navigation, and auxiliary systems.
- Vendor Agnosticism: Axon’s “open systems” design allows operators to buy a vessel and swap out autonomy software, sensors, or mission applications freely over time, preventing expensive supplier lock-in.
- Autonomy Core: A literal “one-box” modular upgrade kit capable of converting existing legacy platforms (even standard petrol-powered craft like jet skis) into fully remote-controlled or autonomous assets with Degree 3 autonomy capabilities.
Market Position & Footprint
RAD has built an insulated, dual-use business model. By supplying both the defense sector (where demand for stealthy, autonomous surveillance drones is surging) and the commercial coastal sector (harbor craft, offshore wind support, and ferries seeking immediate decarbonization solutions), RAD remains resilient to cyclical shipping volatility.
Backed by institutional investors like Mercia Ventures and partnering with international defense builders like Zodiac Milpro, the firm is aggressively executing an expansion strategy into the North American and Indian maritime markets.
Source: RAD Propulsion