€44 Million Boost Accelerates XR Defense Innovation

Varjo announced a €44 million research and development initiative to accelerate the creation of advanced mixed reality training systems for defense and industry use. Business Finland awarded €12 million in funding to support the program, which will focus on developing Varjo’s next-generation XR platform for modern training applications.

Varjo participates in more than 100 defense and aviation programs globally and generates nearly all its revenue through exports. The new funding will strengthen its role as a technology provider for NATO and allied nations.

“Our allies’ security and defense forces need new solutions that improve training, decision-making, and resilience. The funding will not only accelerate Varjo’s global expansion but also ensure that the innovation and technological know-how generated by Varjo will benefit our economy," said Lassi Noponen, Director General of Business Finland.

“The research and development funding from Business Finland acts as a significant lever for Varjo’s own R&D investments. With Business Finland’s support, we can scale our research and development faster and respond to rising international demand, while keeping our core R&D capabilities firmly rooted in Finland," said Timo Toikkanen, CEO of Varjo.

The new XR systems will support training across multiple domains, including aviation, naval, and ground operations. Developed with enhanced security and mobility, the solutions aim to enable training closer to operational environments when required.