Centre approves Rs 1,000 Cr fund to boost space sector startups

The Union Cabinet has approved a Venture Capital Fund worth Rs 1,000 crore to support space sector startups. The fund will assist approximately 40 startups across India, aiming to accelerate the growth of the private space sector and drive advancements in space technology.

The Centre’s goal is to retain domestic space companies and expects that this capital infusion will attract additional funding for later-stage development.

Announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024-25, the fund will be deployed over five years, with an average annual deployment of Rs 150-250 crore. For FY26, Rs 150 crore has been allocated, followed by Rs 250 crore per year for the next three years, and Rs 100 crore in the final year.

The Indian National Space Promotion and Authorisation Centre (IN-SPACe), the agency responsible for promoting private sector participation in the space industry, will manage the fund.

The proposed investment range is between Rs 10 crore and Rs 60 crore, depending on the company's stage, growth trajectory, and potential impact on national space capabilities. Investments for the growth stage may reach up to Rs 30 crore, while for the late growth stage, they could range between Rs 30-60 crore.

Several space tech startups in India, including Agnikul Cosmos, Skyroot Aerospace, Bellatrix, GlaxEye, Dhruva, SatSure, Vesta Space, Digantata nd InspeCity, have raised venture capital.