Sanari Capital responds to enquiry on drone components discovered in Russia-Ukraine conflict

Sanari Capital was asked by Bloomberg to comment on a story about a lidar laser range finder component manufactured by Lightware, one of Sanari’s investee companies, that was found in a Russian drone used in the Ukraine-Russia war.

We are appalled to learn that technology manufactured by one of our investee companies, and that has so much potential to advance human progress positively, has been used in such a manner. It goes against the grain of everything that we stand for as Sanari Capital.

While we recognise that it’s not yet possible for component manufacturers to trace their product to the end-user, we welcome any investigation into how these components could have landed up in the hands of embargoed countries’ military.

The following is a transcript of Sanari Capital’s response sent to Bloomberg on the 8th October 2025:

We appreciate you reaching out and bringing this deeply concerning matter to our attention.

At Sanari Capital, our investment philosophy is firmly rooted in our social purpose — we believe in doing good through our investment work. We are therefore profoundly disturbed to learn that one of the technologies we support has been found in such a nefarious application. This runs counter to everything we stand for.

Our investment in LightWare LiDAR was based entirely on the commercial potential and the significant positive impact that LiDAR technology can have in advancing humanity. LightWare, in particular, has long held the view that LiDAR has the power to change the world. Its solutions are designed to enhance efficiency, productivity, and safety across a wide range of applications. While LiDAR has become globally recognized for its role in driverless cars, LightWare’s world-leading ability to miniaturize LiDAR technology has made it particularly valuable in contexts where sensor size and weight are critical — such as the Internet of Things (IoT), robotics, smart cities, and unmanned aerial vehicles (UAVs) or drones.

We have always been proud of LightWare’s contribution to positive innovation and recently showcased its achievements in our 2024 Sustainability Report. We highlighted its technology’s role in advancing drone delivery safety, accurately tracking ore movements in mining, supporting wildlife headcounts and anti-poaching initiatives, and facilitating the distribution of life-saving medications — among other commercial and socially beneficial uses.

LightWare’s products are designed and developed solely for commercial applications. They are commercial off-the-shelf (COTS) distance sensors and are not MIL-spec. However, we recognize that the drone market has, regrettably, seen increased defence-related use amid ongoing global conflicts. Given that these sensors are commercially available components, there is always the possibility that they could be acquired for unintended purposes, including by parties or in regions subject to embargoes.

It is deeply unfortunate that component manufacturers lack the means to fully trace the end use of their products. We emphatically do not wish for our technology to be used in weaponry of any kind — and certainly not by sanctioned entities. Unfortunately, this remains a broader, industry-wide challenge for which there are currently few effective safeguards.

We are extremely dismayed by this situation, as it represents the complete opposite of the intentions and values that underpin our investment.

The following is a transcript of the questions sent to LightWare’s CEO, Nadia Nilsen on the 8^th October 2025, and the company’s response:

Bloomberg: Are you aware that your equipment is being used in Russian drones used to attack Ukraine?

We were not aware.

LightWare designs and manufactures commercial off-the-shelf (COTS) distance sensors; they are not MIL-spec and not designed for military application.

Furthermore, LightWare does not sell to embargoed countries; Russia and Belarus were added to our embargo list when the war in Ukraine began in February 2022. From our desktop research it appears that parts of the Shahed UAV are reportedly produced by HESA (Iran). HESA is not a LightWare customer, and Iran is also on our embargoed-countries list.

It appears an unscrupulous operator, without our knowledge, purchased our sensors elsewhere and used them unlawfully in Russia. We strongly condemn any use of our products in embargoed territories.

Bloomberg: Is this equipment manufactured at your facilities in South Africa?

Yes. Our distance sensors are designed and manufactured in South Africa.

Bloomberg: Are you aware that that equipment may have dual use applications?

Yes. LightWare distance sensors are dual-use EAR99 commercial items.

While there are no special export license requirements for our products, we use End-User Declarations to control where and to whom our products are sold. However, we do not have visibility of the users or use-cases beyond our official distributors.

Bloomberg: Did you apply to the National Conventional Arms Control Committee for export permits? They say they are not aware of your company.

LightWare designs and manufactures commercial off-the-shelf distance sensors (COTS); they are not MIL-spec and are not designed for military applications.
On that basis we do not fall under the ambit of the NCACC. We comply with applicable export-control laws and our own embargo and KYC policies.

Bloomberg: Is this equipment available on your website and does it retail at about $270?

The SF20/B (905 nm, 50 m) was discontinued in August 2020 and is no longer sold. Historical pricing for discontinued models varied by channel and date. Our current LightWare products are available on our website as COTS distance sensors.

Whilst the SF20/B is discontinued, many of our current products are used for UAV / drone navigation purposes and we are sadly unable to regulate how this sensor can be applied downstream, much like any general use sensor (IMU, barometers, altimeters, thermometers, etc) or other general use component such as semiconductors or PC boards.

Bloomberg: Have sales of this equipment risen recently? If so how much?

The SF20/B was discontinued in August 2020. We have not produced or sold that model since then. Any units in circulation would be legacy channel stock or secondary-market resales. Since LightWare’s products are not marketed for armaments and munitions purposes, we have not seen accelerated growth linked to global conflicts.

Bloomberg: Have you exported the equipment to Russia? If so when and how much? If not how do you think it was procured?

As noted above, LightWare does not sell to embargoed countries. We have no customers in Russia (nor in Iran where it appears the drone equipment may have been manufactured). We have no customers that we know of who supply Russia.  It appears an unscrupulous operator, without our knowledge, purchased our sensors elsewhere and used them unlawfully in Russia.

Bloomberg: We have been told that the Lightware equipment has been found in the Garpiya-A1 drone, a suicide/kamikaze drone that detonates when it reaches its target. Are you aware of this?

We were not aware. From desktop research (Wikipedia), we can confirm that the companies producing these drones are not LightWare customers.

Bloomberg: Does this use of South African-made equipment in the Russia-Ukraine conflict risk harming South Africa’s reputation as a country that’s pushing for an end to that war?

These are off-the-shelf electronic sensors that can be acquired through multiple channels and distributors, and there is a secondary market for such items. That makes controlling post-sale movement extremely challenging despite our embargo policy and end-user controls. The sale of our equipment into the Russia-Ukraine conflict is not condoned by LightWare, let alone our nation state of South Africa.

Bloomberg: And is Lightware concerned about this?

Yes. We strongly condemn any use of our products in embargoed territories, and we fully support the South African government and all others working to end the war in Ukraine.