The Indian space industry received a major boost on Thursday with the announcement of a ₹1,000 crore venture capital fund dedicated to accelerating growth in the sector. Expected to support approximately 40 startups, this landmark fund will not only encourage private sector investment but also create employment opportunities, setting the stage for an innovative future in space exploration and technology.
Supporting Growth Across All Stages
The fund has been planned to run over five years, with individual investments ranging from ₹10 crore to ₹60 crore based on the company’s growth phase and projected impact. Startups in their early growth phase will be eligible for support between ₹10 crore and ₹30 crore, while those in more advanced stages could receive anywhere from ₹30 crore to ₹60 crore. The fund’s yearly deployment will likely fall between ₹150 crore and ₹250 crore, adapting to the investment demands of India’s space landscape.
“This initiative by the government is commendable and will greatly strengthen the space ecosystem. Securing capital is vital for the expansion of space companies, and this fund is set to create a significant ripple effect, attracting a wave of private investments and paving the way for sustained long-term success in the industry,” said Pawan Kumar Chandana, CEO and co-founder of Skyroot Aerospace.
Skyroot Aerospace, one of India’s most prominent space startups, achieved a breakthrough in November 2022 by becoming the first private company to successfully develop and launch Vikram-1, a launch vehicle, marking a milestone in the country’s private space exploration capabilities.
Aiming for a $44 Billion Space Economy
India’s space economy is currently valued at $8.4 billion, with an ambitious government target of reaching $44 billion by 2033. The reform in 2020 opened the sector to private enterprises, leading to an impressive increase in the number of startups. Currently, over 250 startups are registered in the Indian space sector, showcasing significant interest from innovators and entrepreneurs.
The new venture fund’s launch marks a turning point for India’s space industry, signaling readiness for substantial growth, international competitiveness, and expanded employment. As the country moves closer to becoming a global space leader, the enhanced support structure will likely enable these ambitious targets to become reality, inspiring a new generation of engineers, scientists, and innovators in the process.
