Source – yourstory.com
India’s spacetech sector reached unprecedented funding levels in 2023, amassing $126 million, a 7% rise from $118 million in 2022 and an astounding 235% surge from $37.6 million in 2021. As of 2024, year-to-date funding stands at $10.8 million. Despite a global slowdown in funding, India’s spacetech industry continues to flourish, driven by robust government support and significant innovations, according to Tracxn, a market intelligence firm.
Government Support Fuels Growth
The sector’s growth is further bolstered by more than 100 spacetech startups, most of which have emerged in the last five years. The Union Budget’s allocation of ₹1,000 crore is anticipated to significantly boost the industry, fostering more entrepreneurship and attracting substantial investments. Currently, India operates 55 active space assets, including communication, meteorological, and earth observation satellites. Neha Singh, Co-founder of Tracxn, highlighted that the substantial funding and strategic investments are positioning India to become a major player in the global space industry. The combination of strong early-stage funding and supportive government policies is crucial for this growth.
Surge in Early-Stage and Seed-Stage Funding
In 2023, early-stage rounds garnered $120 million of the total $126 million, reflecting a notable increase from $114 million in 2022, marking a 5% rise. Early-stage funding in 2024 has reached $8.5 million to date. Seed-stage funding also experienced significant growth, increasing from $4.3 million in 2022 to $5.3 million in 2023, a 24% rise. Despite this vibrant growth in early-stage and seed-stage funding, the nascent ecosystem for private sector participation in Indian spacetech startups has yet to witness any late-stage funding, according to the report.
Leading Startups and Regional Hubs
Skyroot Aerospace stands out as the highest-funded active spacetech startup in India, with overall funding of $99.8 million, followed by Pixxel at $71.7 million and Agnikul at $61.5 million. No other startup in this segment has raised funds exceeding $50 million. Despite the vibrant funding landscape, no acquisitions have been reported in 2024, with the only acquisition to date being Arya’s 2022 purchase of Prakshep, a satellite imagery provider for the agricultural industry. Bengaluru leads the list of top-funded cities in India’s spacetech sector, followed by Hyderabad and Chennai.
