Tondo Smart, which developed AI-based systems for infrastructure management and smart cities, is deepening its activity in the defense sector. The company announced Wednesday to the Tel Aviv Stock Exchange that it successfully completed a significant milestone in a project it’s executing for the Defense Ministry, after finishing the supply, installation and deployment of all systems required in the current phase of the project.
The systems are designed to provide detection, warning and defense capabilities against drone threats—a field that has become one of the central challenges for security agencies in Israel and worldwide in recent years. Since the outbreak of the Iron Swords war, Israeli investment in advanced solutions against unmanned aerial vehicles has increased, following the extensive use Hamas, Hezbollah and other actors made of drones for intelligence gathering and attacks.
The project began after Tondo Smart signed an agreement with the Defense Ministry in January 2025, following what was defined as a successful pilot. Under that agreement, the company received an initial order to develop and deploy the system, and now reports it has completed one of the key milestones toward its operational launch.
The company said this represents significant progress, and that it intends to continue expanding cooperation with the Defense Ministry. According to the announcement, the company is working with the defense establishment to advance the project’s continuation and arrange its budget through 2027 as well.
Still, Tondo Smart emphasizes there’s no certainty the project will be expanded or that additional systems will be ordered. The company notes that continued activity depends, among other things, on Defense Ministry decisions, budget approvals and completion of required procedures.
For Tondo Smart, this is a strategically significant move. The company, which operated for years primarily in civilian infrastructure and smart cities, is gradually expanding its activity into the defense market—a sector characterized by large budgets, long-term contracts and growing demand for advanced technologies based on artificial intelligence, sensors and real-time warning systems. Success in the current project could open additional opportunities for the company within the defense establishment and in international markets.